After having established its strong presence in GUJARAT for contract farming, HYGIENIC FOODS Systems Ltd (HYGIENIC FOODS), India's largest player in onion dehydration market, has set its eyes on Gujarat for undertaking contract farming of onion.
On experimental basis the company has already brought 62-100 acres of land under onion contract farming in tribal district like junagadh, amreli, Mahuva & saurastra region, of since the beginning of 2010. Hygienic Foods has tied-up with direct farmers, for undertaking contract farming in the tribal district.
"The company aims to cover 400 acres under onion contract farming this year and subsequently scale it up to 2000-2500 acres in the next few years," MR. M. KAPASI senior Managing Partner, HYGIENIC FOODS.
Hygienic Foods has been engaged in contract farming in Gujarat for past seven to eight years with association of 1000 farmers and a total acreage of 1500 acres under contract farming. "Around Rs 15 crore were invested for contract farming project in Gujarat. The company has plans to take up contract farming of onions in nearby areas of Mahuva village (Talgajarda) as well.
Apart from buying back onions from tribal farmers, the company will also provide technical knowlege to the farmers for higher produce of onion.
Hygienic Foods already operates 12 metric tonnes (MT) per day onion dehydration plant near Mahuva and it plans to ramp up the capacity to 250 MT per Month, we produce 1500-2000 M. Tons per Year & may ongoing if we have good cultivation. "The company intends to pump in Rs 10 crore for the expansion,"
Indian onion dehydration industry has grown rapidly to become the second largest producer of dehydrated onions in the world. Hygienic Foods is the largest player in the organized onion dehydration market in the country and satisfying all global consumers through natural ingredients in the global market.
Considering the huge potential for its business in international market, the company is looking at increasing production of value added products like other dehydrated vegetables, fried onion, all spices & all agro products, and frozen onion in the coming year.
