The company expects an increase in exports of wheat and rise, apart from fresh fruits and vegetables
Following the recently announced reforms in agriculture such as allowing contract farming and an expected change in global purchasing power, FMCG Giant intends to launch its own export – oriented fruit and vegetable clusters.
Other reforms such as amendment to the Essential Commodities Act will do away with existing restrictions on stocking food produce. The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 allows farmers and traders to sell and purchase through competitive alternative trading channels.
Various locations are being identified near the port areas to create logistic infrastructure and to facilitate easy export procedure to various countries. According to S Sivakumar, Group Head – ITC’s Agri-Business and Information Technology, there is expectedly a clear demand for processed and fresh fruits and vegetables from the Middle East.
He added that due to increased consumer awareness and insurance on food safety and hygiene in the domestic market there is bound to be a corresponding increase in investment in farms, better supply chains and competitive prices for the farmers.
ITC expects an increase in the quantum of wheat and rice exports, not just in fresh fruits and vegetables alone. The company is planning to invest in horticultural produce like onions, tomatoes and potatoes after the amendment to the Essential Commodity Act. It will also make use of contract farming and involve farmer producer organisations (FPOs), an initiative already promoted by the government.
