ITC is broadening its Farmer Producer Organizations (FPO’s) network to connect one crore farmers over the next 4–5 years. According to S. Ganesh Kumar, CEO of the Agribusiness Division’s initiative aims to enhance the sourcing of fruits and vegetables through this platform.
ITC operates in approximately 22 states via Farmer Producer Organizations (FPOs) and is engaged with 20 different crops. The company plans to further expand its efforts in states such as Madhya Pradesh, Rajasthan, Haryana, Punjab, and Bihar.
Additionally, ITC is focused on broadening the reach of its super app, MAARS—a ‘phygital’ initiative that collaborates with FPOs to offer personalized support to farmers. This includes services ranging from weather forecasts and crop sales at mandi prices to the supply of seeds and fertilizers, as well as soil testing and assistance in securing bank credit.
Through MAARS (Metamarket for Advanced Agriculture Rural Services), ITC is also improving agricultural practices for small farmers by leveraging technology aggregation, AI-driven solutions, AgTech, and an e-marketplace for commodities and agricultural inputs.
Ganesh informed PTI that the current agri stack and FPO collectivization stands at approximately 1,600, to increase this number to 4,000 and reach 10 million farmers within the next four to five years.
He also mentioned that ITC is broadening the scope of these FPOs to include not only traditional crops like wheat, paddy, maize, soya, chili, and cumin, but also green peas, mangoes, fruits, and green vegetables, utilizing a cluster-based strategy.
These Farmer Producer Organizations (FPOs), established by bringing together small and marginal farmers to manage agricultural activities, have evolved into hubs of economic activity in their respective regions. ITC is now working to connect these FPOs with the advantages of modern technology and scientific advancements.
As part of its NexGen Agri vision, ITC aims to educate small farmers about the potential effects of climate change on crop zones and growing seasons, the necessity of soil rejuvenation, and the significance of crop rotation, among other important practices.
Currently, approximately 40 percent of ITC’s agricultural procurement from the relevant hubs in the 10 states where MAARS has been implemented is sourced through the MAARS system, he stated.
As part of the ITC Next Strategy, NexGen Agri’s vision includes integrating MAARS with startups to deliver effective grassroots solutions through viable agritech innovations.
The initiative promotes effective practices like broad bed furrowing, the use of technology such as drones for optimal fertilizer application, resilient crop varieties, soil conservation, and water management as part of its Climate Smart Agriculture efforts.
I am confident that by collaborating closely with farmers, we can enhance the value within the system, transforming their produce into residue-free, organic options that command premium prices, and introduce new varieties, he stated.
Ganesh describes this as a win-win scenario, emphasizing that it will enable them to develop their brands around the theme of quality in the FMCG sector.
In addition to Aashirvaad, ITC’s demand-driven agricultural value chain includes several of its in-house brands such as Bingo, Farmland, B Natural, Sunrise, and Sunfeast.
These connections with farmers have been established over the past 23–25 years, coinciding with the launch of our FMCG portfolio as a backend support. Throughout this journey, we have transitioned from e-Chaupal to Farmer Producer Organizations (FPOs). Currently, we have around 1,660 FPOs representing 1.7 million farmers, Ganesh explained.
Through MAARS, ITC aims to assist farmers by leveraging technologies such as artificial intelligence (AI) and is currently in the process of gathering data.
Our software is still in its early stages, but we will continue to enhance it by accumulating data. Having five to seven years of data for a specific region will undoubtedly provide farmers with improved solutions in the future, as it will be predictive, he explained.
The micro-level data, combined with satellite imagery, will enable the development of solutions tailored to hyper-local needs.
By analyzing soil conditions and the crop varieties being cultivated, we can offer more precise advice and guidance. Additionally, as we gather information on factors like wind direction and pest activity at various growth stages, we will be able to provide recommendations on those aspects as well, he added.
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