Metro Cash and Carry (MC&C), one of India’s leading B2B wholesalers, evinced interest in setting up a Farmers’ Producer Organisation (FPO) in Andhra Pradesh for processing and supplying poultry meat, especially frozen chicken, to markets across the country.
The Department of Animal Husbandry and Fisheries (DoAHF) is currently in negotiations with it (MC&C) and is likely to firm up the arrangement (FPO) in the coming months while following a similar plan to get global confectionery major Mondelez to extend its helping hand to milk producers, said Special Chief Secretary Manmohan Singh.
Addressing the media along with Horticulture Commissioner Chiranjiv Choudhary here on Friday, Mr. Manmohan Singh said MC&C was sourcing massive quantities of poultry meat from Coimbatore by tying up with the farmers and it came forward to replicate the model in A.P. The contours of this proposed Public-Private Partnership (PPP) are being drawn up.
Mr. Singh said there was tremendous scope for value addition to the supply chain in the fisheries and dairy sectors, where A.P. stood in first and sixth positions respectively. A.P. accounts for 42% of the country’s fish and prawn production, and 300 lakh litres of milk was produced every day but only 30% of it was processed.
Efforts were under way to rope in more private companies to bring their synergies in those areas to benefit along with the farmers, whose main disadvantage was lack of proper marketing facilities.
Mr. Chiranjiv Choudhary said 12 reputed companies, including ITC, entered into MoUs for setting up FPO and five signed Letters of Intent, bringing in funds to the tune of ₹375 crore.
Several companies were keen on foraying into A.P., which was availing the assistance provided by the World Economic Forum in supporting various value chains, he added.