SERP has signed an agreement with Plant Lipids Private Limited to procure 20,000 metric tonnes of Teja variety peppers mainly for vegetable oil production
Posted Date – 07:40 AM, Sun – 5/14/23
Buy and ship Chili from one center in Mahababad district.
Mahababad: The Society for the Eradication of Rural Poverty (SERP) continues to successfully source Teja varieties of red peppers from farmers in the Mahababad region. Through Self Help Group (SHG), SERP has procured 400 metric tons of chilli from various places in the region and has disbursed Rs 7 million so far. The state government is expected to procure about Rs 110 crore worth of red chilli as the procurement is still ongoing.
To help farmers get a fair price for their products, SERP established Village-Level Procurement Centers (VLPCs), covering three to four villages per VLPC in the region, allowing farms to procure and avoid late payments. The task of identifying quality peppers and company-specified standards is handled by the Farmers Producer Organization (FPO), which is promoted by the SERP and operated by SHG.
SERP has signed an agreement with Plant Lipids Private Limited, located in Seerole mandal, to purchase 20,000 metric tons of peppers of the Teja variety mainly used for vegetable oil production. Sourcing eliminates middlemen and other exploitative practices, benefiting both farmers and SHG.
Last year, SERP procured 2,140 MTs of stocks of Teja variety from five mandals worth a total of Rs in Khammam district alone. 360 crore with four FPOs earning Rs. 9.6 million. This year, SERP appointed 10 FPOs to source chilli from 37 mandals in 6 regions by setting up 81 sourcing centres. The procurement exercise will also benefit farmers, who are estimated to save at least Rs 1,000 per quintal due to lower transport costs and market taxes.
An official from SERP said, “This initiative aims to help farmers and SHG. It will help farmers get better prices and faster payments. For SHG, they will earn more commissions. Most importantly, the whole Sourcing activities will eliminate middlemen and all kinds of exploitation.”
