PepsiCo turns farmer for a perfect wafer

Did you hear the way the crispy potato wafer crumbled in your mouth today? No, try it. Nothing's more melodious. However, the next time you bite into a wafer, be sure to thank God for your perfectly global taste buds and also throw in a small silent prayer for the hand that had tilled the soil for the crop in the first place. It is the fruit of this hand's untiring labour that goes into making you enjoy your "wafer-ly' indulgence every now and then ” or crave unabashedly for the perfect crunchy chip that melts in your mouth.

Recognizing this effort, even food and beverage giant PepsiCo India, who happens to the largest buyer too, did not dither to soil its hands while lending a helping hand to West Bengal's 6,500 potato farmers. PepsiCo India's contract farming initiatives there in 2009 have met with spectacular success. It marked unprecedented 150% growth, while covering a total acreage of 2600 acre and yielding in huge returns to the tune of Rs25,000 ' Rs40,000 per acre for the PepsiCo India farmers.

PepsiCo India offered knowledge of the correct geometry and chemical kit required for optimal harvesting to these farmers, who also benefited from better quality seeds and timely irrigation facility as well as maintaining regular follow up on all relevant agricultural practices. After harvesting, the company also provided the farmers with transport and storage facilities. Together with external factors like favorable climate and disease-free crop cycle, PepsiCo team's timely intervention resulted in the farmers boosting their profits to almost double.

Commenting on this Nishchint Bhatia, Executive Vice-President, Agro, PepsiCo India, said: "Being the largest procurer of potato in India, PepsiCo India has given the local potato farmers the leverage to access world class agricultural practices." Among PepsiCo India's best farm practices, mention may be made particularly of the "weather insurance' is a unique feature introduced by FritoLay India for the farmers. It also guarantees a "buy back' price for the farmers, which ensures a regular income for them.

In command of the country's largest contract farming practices, PepsiCo India works with nearly 15,000 farmers and of the total produce of about 150,000 tons, buys around 75,000 tons. PepsiCo's 18 different billion-dollar food and beverage brands is available across 200 countries and yields more than $1 billion in annual retail sales. Its Frito Lay foods division in the country runs three state-of-the-art plants to cater to the wafer-crazy market.