• PAGE ONE
• INDEX
• HOME

Global Green to extend contract farming to TN

R. Balaji

CHENNAI, June 4

THE Bangalore-based Global Green Company Ltd (GGCL) belonging to the Thapar group plans to enter into contract farming in Tamil Nadu, according to its Chief Operating Officer, Mr. Debashish Mitra.

The company plans to induct about 1,000 farmers initially in Chinglepet district in Tamil Nadu near here. Covering about 500-1,000 acres, the project will involve 3,000 small and marginal farmers within a 150-km radius. The produce could be harvested and processed within 24 hours.

The company plans to introduce gherkins and baby corn which have good demand in the domestic and international markets. Currently, it is engaged in contract farming in Karnataka and Andhra Pradesh where about 10,000 farmers have entered into contracts fo r the cultivation of chillies, paprika, gherkins and baby corn for Global Green.

According to Mr. Mitra, this was part of the company's Rs. 60-crore plan for horticulture produce processing and export and expansion in the domestic market. Working with small farmers, and equipped with the latest processing facilities, the company hope d to position itself as an integrated `seed-to-shelf' global foods supplier, he said.

GGCL recently acquired VST's Natural Products division at Hyderabad and is in the advanced stage of acquiring Tata Tea's mushroom unit at Chinglepet. The acquisitions are aimed at expanding the company's product base, and exploiting new market segments.

For instance, in Karnataka, the company cultivates gherkins through contract farming and processes and exports in bulk (barrels) and consumer packs. The mushroom facility at Chinglepet now puts at GGCL's disposal not only a new product, i.e. mushrooms, b ut also a canning facility for its gherkins, and other vegetables.

This will mean that through export in cans, the company can exploit the catering or institutional sector in food industry internationally. The first consignment of gherkins in cans is to be exported shortly. Further, the product is positioned higher up t he value chain, when compared to bulk packaging, and achieves `better money for value'. Conversely, the existing packaging capacities will also be better utilised with a wider product range.

Also on the anvil was a proposal to introduce `Tify Fresh' a new brand of fresh vegetables in the domestic market. A variety of fresh vegetables such as baby corn, capsicum, cherry, tomato, jalapenos and mushrooms would be on the market shelves in about one year. The company was in the process of putting up the cold chain required for marketing fresh produce, Mr. Mitra said.

Currently, the company markets `Tify' brand of gherkins, olives, dessert sauces and fruit conserves in the domestic market. The fruit conserves are imported in consumer packs from a leading manufacturer in the UK, and labelled in India.