Telangana - SERP procures Rs 7 crore worth red chillies in Mahabubabad
In order to help the farmers get a fair price for their goods, SERP has established village Level Procurement Centres (VLPCs), with each VLPC in the district covering three to four villages. This enables farm gate procurement and prevents payment delays. Farmer producer Organisations (FPOs), which are supported by SERP and run by SHGs, are responsible for finding the best chilies and adhering to the criteria set by the firm.
To purchase 20,000 MTs of teja type chillies, which are largely utilised in the manufacturing of vegetable oil, SERP has inked a contract with Plant Lipids Private Limited, a company based in Seerole mandal. Both the farmers and the SHGs benefited from the procurement exercise's elimination of intermediaries and other exploitative practises.
Five mandals in the khammam district alone provided SERP with 2,140 MTs of teja variety stock last year, for a total value of Rs. 36 crore, of which four FPOs received commissions of Rs. 96 lakh. This year, SERP engaged 10 FPOs to establish 81 procurement stations and purchase chiles from 37 mandals in six districts. Farmers would also profit from the procurement effort since they will save money on transportation and market taxes, which are expected to total at least Rs 1,000 per quintal.