After millions of milk producers, potato growers are all set to reap benefits of Amul model as the co-operative dairy giant is now planning to directly procure potatoes from farmers for its foray into frozen potato products. The Taste of IndiaAmul is launching french fries, potato wedges, hash browns and burger patty (aloo tikki) products before Diwali.
"We will launch potato products such as french fries and burger patty in the second week of October," said RS Sodhi, managing director, Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul brand.
Sodhi was speaking to reporters on the sidelines of Red Bricks Summit at Indian Institute of Management, Ahmed abad (IIMA) in the city .
Initially, it intends to procure1lakh tonnes of potatoes from farmers in north Gujarat, which is known for quality potatoes. "Amul has readied a plant for these products near Mehsana and its production capacity will be 50,000 tonnes. For this, we require1lakh tonnes of potatoes," he added. Interestingly , McCain Foods Limited's french fries and other frozen potato products plant is located close to Mehsana on Ahmedabad-Mehsana highway . The Canadian multinational also procures potatoes from north Gujarat.It is a major potato growing region in the state and accounts for most of Gujarat's 16 lakh tonnes potato production.
"Despite having good quality , potato farmers are not getting remunerative prices. We have taken this initiative to provide better returns to the potato growers," Sodhi added.
After milk, potato is the only commodity which Amul will be procuring directly from farmers. According to GCMMF MD, the dairy federation is bring Amul model to potato farmers and will provide remunerative prices to them as it has done in case of milk producers associated with it.
Amul will procure potatoes through contract farming and provide seeds to farmers as well. "The plant is soon going to start production and our products will be priced 15%-20% cheaper than those already available in the market," he said.
Amul's move to enter into frozen food segment is strategic one as the co-operative major enjoys a strong cold-chain as well as retail network across India, which is a crucial pillar of frozen food industry.
