Business | Updated Feb 27, 2008 at 09:37pm IST

Pepsico ties up with Punjab govt

Bushra Bhushan, CNN-IBN

Hoshiarpur: A public-private partnership between the government of Punjab and Pepsico proves farmers are not against reforms.

One of the largest producers of wheat and paddy, Punjab, will soon make a place for itself in the fruit market. Punjab agricultural export corporation signed a project with Pepsi for citrus development program in 2002. For this Pepsi has brought in 32 varieties of citrus fruit to India and tied up with over 1000 farmers for procurement.

With better agricultural inputs like quality seeds, variety of saplings and improved technical know-how, farmers have been able to double their income to more than one lakh per acre.

“We got good rates from Pepsi and by using their saplings, output has increased by 20%,” says Farmer, Sujit Singh.

Pepsi shares the production cost with the farmers using their saplings, with a buy back guarantee giving the farmer a consistent income, since the company is now using the fruit concentrate for its juice brand Tropicana. It currently processes the fruit in this 400 metric tonnes daily capacity plant taken on lease from the state government.

“We are currently getting only 30% of our demand. We will triple the number of farmers,” says Exec VP-Exports, PepsiCo India, Amit Bose.

With Pepsi looking to set up an entire backend chain for fruits and vegetables that grow in the region, the state will surely reap long-term benefits of this public-private partnership.

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