Private companies such as Reliance Fresh, Subhiksha and Bharti Field Fresh are all set to get a shot in the arm with the Punjab government expressing its willingness to allow the companies direct procurement of vegetables and fruits from farmers. This will cut the role of middlemen and enable increased profit margins for the company as well as farmers. But neighbouring Haryana is not too keen on the proposal.
Confirming this, Punjab finance minister Manpreet Singh Badal said: “The produce can be lifted by anybody. This goes in favour of farmers and we will allow companies to procure directly from them.” Agri experts feel that this will help the farmers in crop diversification. Reliance Retail at present will be getting produce from Himachal Pradesh, the NCR region and Agra, besides Punjab.
However, the Haryana government will not be encouraging companies for direct procurement. “Mandis will loose their purpose if we allow direct procurement by private companies. Moreover, market fee is a great source of revenue for the state exchequer,” said Haryana finance minister Birender Singh. After witnessing a phenomenal response in Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat and Maharastra, Reliance has started its retail operations in Punjab.
Talking to ET, Mr Sanjeev Asthana, president of Agri & Food Supply Chain, Reliance Retail, said: “Doing our own farming will not make sense. We intend to provide technical know-how to farmers and we will make them part of the global supply chain. This will not happen at the cost of middlemen , rather we will be taking everyone along right from the middlemen to push cart vendors. It is an inclusive model” .
Initially, Reliance will be roping in almost 2,000 farmers across the state. Looking at Punjab’s agrarian economy, the companies have earmarked a heavy budget for the state. Reliance has earmarked a budget of Rs 25,000 crore across the nation. “I cannot give the figures but we will have dominant and significant part of the budget for Punjab, as it is an agrarian state,” added Mr Asthana.
With agri-retail boom on the anvil, the demand for agri experts have already risen considerably. Companies like Reliance and ITC have already started recruiting B.Sc. graduates from Punjab Agriculture University (PAU) and horticulture universities across the nation. Punjab will be the second state in the region to allow direct procurement of vegetables and fruits from farmers. Till date, the state government had only allowed sorting, grading and storing of the produce from the mandis.
Interestingly, the Punjab government is also planning to set up a modern mandi at Ladowal, sprawled around 200 acres. “This will be a joint venture of the state government and private players in 51:49 ratio, respectively,” said Ajmer Singh Lakhowal, chairman of Punjab Mandi Board and BKU president.
Confirming this, Punjab finance minister Manpreet Singh Badal said: “The produce can be lifted by anybody. This goes in favour of farmers and we will allow companies to procure directly from them.” Agri experts feel that this will help the farmers in crop diversification. Reliance Retail at present will be getting produce from Himachal Pradesh, the NCR region and Agra, besides Punjab.
However, the Haryana government will not be encouraging companies for direct procurement. “Mandis will loose their purpose if we allow direct procurement by private companies. Moreover, market fee is a great source of revenue for the state exchequer,” said Haryana finance minister Birender Singh. After witnessing a phenomenal response in Andhra Pradesh, Tamil Nadu, Karnataka, Gujarat and Maharastra, Reliance has started its retail operations in Punjab.
Talking to ET, Mr Sanjeev Asthana, president of Agri & Food Supply Chain, Reliance Retail, said: “Doing our own farming will not make sense. We intend to provide technical know-how to farmers and we will make them part of the global supply chain. This will not happen at the cost of middlemen , rather we will be taking everyone along right from the middlemen to push cart vendors. It is an inclusive model” .
Initially, Reliance will be roping in almost 2,000 farmers across the state. Looking at Punjab’s agrarian economy, the companies have earmarked a heavy budget for the state. Reliance has earmarked a budget of Rs 25,000 crore across the nation. “I cannot give the figures but we will have dominant and significant part of the budget for Punjab, as it is an agrarian state,” added Mr Asthana.
With agri-retail boom on the anvil, the demand for agri experts have already risen considerably. Companies like Reliance and ITC have already started recruiting B.Sc. graduates from Punjab Agriculture University (PAU) and horticulture universities across the nation. Punjab will be the second state in the region to allow direct procurement of vegetables and fruits from farmers. Till date, the state government had only allowed sorting, grading and storing of the produce from the mandis.
Interestingly, the Punjab government is also planning to set up a modern mandi at Ladowal, sprawled around 200 acres. “This will be a joint venture of the state government and private players in 51:49 ratio, respectively,” said Ajmer Singh Lakhowal, chairman of Punjab Mandi Board and BKU president.
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