ITC plans expansion of Choupal Fresh in state
By Girish Kuber, TNN |
Highlights
MUMBAI: ITC is all set to make the best of the Maharashtra government���s retail-friendly policy by planning expansion of its retail initiative Choupal Fresh across the state even as others, especially Reliance���s retail initiative, appear to have been stuck on the controversial issue of land.
The company is talking to the Maharashtra government after the state ended the monopoly of agriculture produce market committees and permitted direct marketing and single licensing system, thus offering a gateway to private enterprises. ���We are satisfied with the results of our three-month-old Choupal Fresh experiment in Pune.
Now we plan to take it to other cities,��� ITC���s agri business division���s CEO, S Sivakumar, told ET. The company���s Choupal Fresh operates as a wholesale-cum-retail store. It is now looking at two districts, Satara and Solapur, for bringing in more farmers into its net. ���We may sign an agreement with farmers for exporting pomegranates from Satara,��� he said.
Mr Sivakumar welcomed the Maharashtra government���s policy that allows corporate houses and retailers to get into contract farming, but said we are more into ���contact farming��� and not contract farming. ���We handle the whole exercise very differently. We are in constant touch with farmers who sell us produce and most importantly, we are not at all interested in their land,��� he said.
ITC���s smooth launch is viewed in the wake of Reliance���s recent proposal to get into contract farming. As reported by ET last year, Reliance has sought about 1 lakh acres of prime farm land in Pune on a 50-year lease to grow vegetables and other agro products as part of its integrated retail operations. ���Our business model allows us to run operations without getting into any kind of lease,��� Mr Sivakumar said.
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On the other hand, the Maharashtra government, too, has acknowledged ITC���s role. ���An experiment of single licensing involving ITC proved extremely successful and beneficial for farmers,��� Harshvardhan Patil, state minister for marketing, had recently told ET. His initiative to bring in an amendment to the marketing Act has freed 285 APMCs, thereby offering farmers an alternative. The new Act allows single marketing licensing system to retailers.Last year it was implemented on an experimental basis when ITC was given licence to buy soybean directly from farmers in Vidarbha. The company bought around 80,000 tonnes of soybean worth Rs 108 crore directly from farmers.
The company offered the farmers better quality seeds to increase the yield along with transport facilities to bring in their produce. The company has also set up a complete cold chain for ensuring the availability of fresh products in the market, besides direct linkages with farmers for sourcing farm fresh produce, Mr Sivakumar said.
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