GREENCORE PRODUCER COMPANY LIMITED

In their own words

Procurement of paddy/wheat under MSP scheme from farmers in the state of Uttar Pradesh The state of Uttar Pradesh in mandate has given approval to the Farmer’s Producer Company registered under Companies Act, to engage in procurement business of paddy/wheat directly from Farmers under MSP scheme. We will expand the coverage of Minimum Support Price (MSP) operations to such identified districts/parts of the district, where outreach of government agencies has been weak and state governments have approved FPC’s to reach out to the paddy/wheat farmers for improvement. Initially to start, we will cover 4 districts of Uttar Pradesh i.e. Prayagraj, Pratapgarh, Fatehpur and Sultanpur, later the coverage will be extended to the entire state of Uttar Pradesh. Our Approach We are targeting to open 25 Procurement Centers with 2 staffs per centre where procurement will take place. The target of the Company is to initially start with paddy, wheat and eventually extend the coverage to Pulses and other agricultural produce. Procurement Process The produce will be procured directly from farmers at Minimum Support Price (MSP) after quality & quantity check done as per Govt. Specification. Procurement will be done from only those farmers who have proper Bank Accounts, Land Document & KYC. Further payments will be directly done into their Bank Account’s (including KCC accounts) through RTGS/NEFT & any other Electronic mode only. The advantage of this scheme is to transfer the benefit directly in their Bank Account that was not available to farmers in the earlier system. Farmers are getting MSP price which is normally 25% higher than market price. The added advantage to the farmers is that Government will also link the other benefit/incentive/subsidy directly in their Bank Account like Bonus, Fertilizer Subsidy, Interest Subsidy, Crop Insurance etc Delivery Strategy Further after procuring we will be delivering the paddy to state designated millers for milling. (Milling agreements will be done with the millers in all the districts where we are planning to procure). After milling of paddy the Custom Milled Rice will be delivered at the Government designated Warehouse. In case of procurement of wheat, it will directly be delivered to the Government designated Warehouse after the procurement, i.e. no intermediary is required. Further there will also be no risk in respect of price fluctuation as Purchase price and sale price are fixed. Profitability & Employment Generation We will be procuring the paddy/wheat at fixed MSP price by Government and selling the Rice/wheat at price fixed as per the provisional cost sheet provided by the State. So there is no risk in respect of price fluctuation as purchase price and sale price are fixed. Working at grass-root level, will cut down the number of hands exchanged thus making the model highly profitable. In near future to increase the margins, the Company has also planned to set up a raw rice and dal mill plant (for pulses) in the District Fatehpur, Uttar Pradesh. Once we set up our own processing plants we will not have to do agreements with millers, which would definitely increase the margins. It will create huge employment opportunities as huge number of man power will be required at the Govt. Designated Purchase centres where the procurement process will take place.

Written by the company on its public Startup India profile. Not verified by us.