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Dhimant Bhatt

"The company is now set to scale-up its seeds and commercialised corporate farming business."

Mumbai , Aug. 22

KRBL, largest basmati rice exporter under the brand names of `India Gate', `Doon' and `Bemisal', has chalked out a plan to expand its acreage of rice farming to over five lakh acres under commercialised corporate contract farming, in association with multinational companies.

The company is currently conducting contract farming on over one lakh acre of land spread across Uttaranchal, Uttar Pradesh, Punjab and Haryana.

"Contract farming has developed in to a huge potential considering the opening of huge untapped organised farming market eyed by multinational conglomerates for their sourcing needs," said Mr Ashok Chand, Chief Executive Officer, KRBL.

"The company is now set to scale-up its burgeoning seeds and commercialised corporate farming business. It is also upgrading its research facilities to international standards for which it has earmarked $2 million," Mr Chand said.

KRBL is scaling up its manufacturing capacities to manufacture, process and market seeds of cereals, pulses, oilseeds and fibre crops. In the first phase, it plans to scale-up the production of high quality seeds of cereals such as wheat, maize and pearl millet.

The company has also entered into an arrangement with Rallis India to provide farm management services (FMS) to farmers. Under FMS, the company arranges to provide all inputs to the farmer including seeds, fertilisers, pesticides and also farm equipment.

The company would also strengthen its business segment of agro-input products shops at various village levels to market its wide range of products along with the products of its associates to facilitate better farming facilities to farmers across India.

KRBL is introducing many value-added products in the market over the next few months.

"The research department of the company has been successful in developing health oil from the rice barn and the commercial production will commence soon. In addition to this, a wide variety of health foods generated out of by-products are being launched," Mr Chand said.

Bran oil is considered to be very effective in controlling heart related diseases and is very popular in developed countries.

With the introduction of health oil and food items in the market, KRBL's bottom line would change drastically. In the first year, the company is targeting a sales of over Rs 100 crore from the product.

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KRBL to expand acreage under contract farming

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