ITC’s business head for agriculture and information technology S Sivakumar said international buyers were diversifying their sources of supply in the wake of the pandemic. “For example, the Middle East countries will be keen to procure fruits and vegetables from diverse sources, both fresh and as well as processed products,” he said.
The company plans fruit and vegetable clusters closer to the ports to create logistics infrastructure for exports. Sivakumar said the company is exploring various options in view of the agricultural reforms announced by the government. It hopes to use contract farming and involve farmer producer organisations (FPOs), which the government is actively promoting.
To begin with, ITC is planning three clusters in six to seven months in various parts of the country. The company is already in talks with customers and building the supply chain to export to Europe, the US and the Middle East.
The government recently approved three ordinances to reform agriculture.
Legalising corporate farming—The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020—is expected to provide for a national framework on farming agreements that protects and empowers farmers to engage with agri- business firms.
Further, the amendment to the Essential Commodities Act will remove the existing restrictions on stocking food produce. The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 allowed farmers and traders to sell and purchase through competitive alternative trading channels.
“Horticulture crops like onions, tomatoes and potatoes, all of these had the stock limit under the Essential Commodity Act. Now, with the amendment, we can also explore creating those clusters and put in investments,” he said.
Apart from fresh fruits and vegetables exports, ITC also expects wheat and rice exports to pick up.
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2 Comments on this Story
Avais Ansari212 days ago
ITC can be a case study for businesses. The way had meticulously planned their foray into FMCG, Hospitality has paid off. Big respect to the late Mr. Deveshwar for his vision of the Indian market, the stakeholders confidence and consistent support to him through this phase to where they stand now. From what we have been reading all the years , ITC has maintained a very clean image in the business. All the very best to them in their new agriculture venture.
Suresh Kamath212 days ago
ITC is TRULY a well Professional Company with efficient qualified Persons who have foresight of all such Planned Business and achieving their GOAL and Compete with the best in the Industry and even LEAD the Sectors as ITC has diversified into FMCG Hotels and Dairy from ONLY one segment of Cigarette a few decades ago
ITC is UNIQUE in its own ways of taking the Lead and always paid the Farmers for their Produce and assisted them during sowing and soil testing methods to Produce more and earn more with ITC Team