Bussiness Ideas

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.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.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.