Hll, Dharamsi In Talks For Agri-Input Centres

Consumer products major Hindustan Lever (HLL) and Dharamsi Morarji Chemical Company (DMCC), the largest producer of single super phosphate (SSP) fertiliser, are in talks to set up agri-input centres in the country. These centres will be similar to HLL's on-going farmer service centres in Madhya Pradesh.

Vinod Punshi, managing director, DMCC, said, "The plan is to set up centres to create direct access for the farmer and to do away with the middleman."

DMCC is also planning to rope in financial institutions to provide loans for procuring fertilisers and seeds to the farmers. Towards this, DMCC has already held discussions with the National Bank for Agriculture and Rural Development (Nabard).

 

These agri-centres are expected to provide an entire package to farmers. This will include availing credit facilities for their farm requirements from banks or institutions, fertilisers and nutrients from DMCC, while assured offtake of their farm produce by HLL. These centres will basically lower supply chain cost, Punshi added.

Punshi indicated that HLL could use the farm produce for its brands such as Annapurna.

The agri-centres will be floated as pilot project by DMCC. However, the consumer major has already set up a similar programme where it has tied-up with Rallis and ICICI. This 250-acre project area in Madhya Pradesh is to produce basic grain such as wheat. These projects are part of HLL's action plan called 'food revolution'.

HLL is working towards a three-pronged strategy --precision farming to improve farm production by adopting agronomical measures, creating a partnership web of agri input companies, insurance companies, grain handling and storage companies along with the farmers and redirection of government policies along with amendments in the legal framework.

Meanwhile, banks are promoting credit for farmers with special schemes for the farmers. State Bank of India (SBI) has started a scheme called the 'Green Channel Programme' to motivate the staff of its rural branches to cultivate farmers as clients.