Telangana: SERP targets procurement of 20,000 MTs of Teja variety Red Chillies 

This season, efforts are onto procure Teja variety from Khammam, Bhadradri Kothagudem, Mahabubabad, Warangal, Jangaon and Suryapet.

Hyderabad: After procuring 2,140 metric tonnes of Teja variety red chillies in Khammam district last February and helping Self Help Groups (SHGs) in getting high commission, Society for Elimination of Rural Poverty (SERP) is now targeting procurement of 20,000 MTs of the variety in six more districts.

To this effect, an action plan has been prepared to procure stocks at the farmers’ doorsteps and help them get good price for their produce. This season, efforts are onto procure Teja variety from Khammam, Bhadradri Kothagudem, Mahabubabad, Warangal, Jangaon and Suryapet.

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SERP has already signed a pact with Plant Lipids Private Limited to procure 20,000 MTs. Benishan, a State-level federation of Farmer Producer Companies (FPCs) and Farmer Producer Organisations (FPOs), will procure the stocks from about 28,000 farmers in the six districts.

To ensure procurement is completed as per schedule, 81 Village Level Procurement Centres (VLPCs) are being set up and each centre covers about three to four villages.

The task of identifying the top quality chillies and the standards specified by the company and interacting with farmers is handled by FPCs, which are basically promoted by SERP and operated by SHGs.

Since it would be farm gate procurement model, there would be no delay in terms of payments to farmers. And, more importantly, they do not have to worry about transportation costs, as the company would handle the logistics of loading the stocks from VLPCs to its unit at Kuravi mandal, Mahabubabad district.

Further, this would help the farmers to save more as well. Last year, farmers saved about Rs.8,000 to Rs.10,000 per tonne by cutting down the transportation costs, market taxes etc.

As last year, 2,140 MTs of stock was procured from Khammam district alone, the total value generated was Rs.36 crore. Of these, Rs.96 lakh commission was earned by four FPOs.

Panchayatraj and Rural Development Secretary Sandeep Kumar Sultania said procurement of about 20,000 MTs would be done this year. The idea was to help the farmers and SHGs earn more under these initiatives.

“This initiative will help farmers to get better price and faster payments. For SHGs, they will earn more commission. Above all, the entire procurement exercise will eliminate middlemen and all sorts of exploitation,” said Sandeep Kumar Sultania.

Rabi season 2022 (pilot project)

District : Khammam
– FPOs involved: 3

– Mandals covered: 05

– Procurement Centres : 11 (Farm gate Procurement)

– Procurement Days : 55

– Quantity Procured : 2,143 MT

– Purchase Value : Rs. 36 crore

– Service Charges earned by FPOs: Rs. 96 Lakhs to (04) FPOs involved

Rabi Season 2023

Distrcits: Khammam, Bhadradri Kothagudem, Mahabubabad, Warangal, Jangaon and Suryapet

– FPOs involved: 10

– Mandals covered: 37

– Procurement Centres : 81 (Farm gate Procurement)

– Procurement Days : 60 (February and March)

– Estimated quantity available for procurement: 60,000 MTs

– Targeted quantity : 20,000 MTs through tie up with Plant Lipids Private Limited

– Estimated value of the targeted quantity: Rs. 350 crore

– Expected service charges to be earned by FPOs: Rs.6 to 7 crore