Telangana: SERP procures Rs 7 crore worth red chillies in Mahabubabad

SERP has signed an agreement with Plant Lipids Private Limited to procure 20,000 MTs of Teja variety chillies, primarily used in vegetable oil production

Mahabubabad: The Society for Elimination of Rural Poverty (SERP) continued successful procurement of Teja variety red chillies from farmers, in Mahabubabad district. Through Self Help Groups (SHGs), the SERP has procured 400 MT of chillies from various mandals in the district, amounting to a payment of Rs 7 crore to date. With the procurement still underway, the State government is expected to procure red chillies worth around Rs 11 crore.

To aid the farmers in receiving a fair price for their produce, SERP has formed Village Level Procurement Centres (VLPCs) covering three to four villages per each VLPC in the district, allowing for farm gate procurement and avoiding delays in payment. The task of identifying the top quality chillies and the standards specified by the company, is handled by Farmer Producer Organisations (FPOs), which are promoted by SERP and operated by SHGs.

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SERP has signed an agreement with Plant Lipids Private Limited, located in Seerole mandal, to procure 20,000 MTs of Teja variety chillies, primarily used in vegetable oil production. The procurement exercise has eliminated middlemen and other exploitative practices, benefiting both the farmers and the SHGs.

Last year, SERP procured 2,140 MTs Teja variety of stock from five mandals in Khammam district alone, generating a total value of Rs. 36 crore, of which four FPOs earned a commission of Rs. 96 lakh. This year, SERP has appointed 10 FPOs to procure chillies from 37 mandals across six districts by setting up 81 procurement centres. The procurement exercise will also benefit farmers, who are estimated to save at least Rs 1,000 on each quintal due to reduced transportation costs and market taxes.

An official from SERP said, “This initiative was aimed at helping farmers and SHGs. This will help farmers to get better prices and faster payments. For SHGs, they will earn more commission. Above all, the entire procurement exercise will eliminate middlemen and all sorts of exploitation.”