Govt urges hotels to source produce directly from FPOs

New Delhi: Agriculture Secretary Devesh Chaturvedi on Monday asked hotels and restaurants to buy produce directly from farmer-producer organisations (FPOs) to improve returns for growers by eliminating middlemen from the supply chain.

The secretary also called on the hospitality industry to promote Geographical Indication (GI) tagged food products to enhance the dining experience for tourists and visitors. "We have a large number of hotels and restaurants across the country. And if you are able to develop a partnership with the local farming community to get authentic food, vegetables, spices, and other things, then it will be a win-win situation," Chaturvedi said at an event organised by the Hotel and Restaurant Association of Northern India and the agriculture ministry.

India has about 35,000 FPOs nationwide, including 10,000 established under government schemes, the secretary said. The ministry plans to launch a web-based platform, where FPOs can register their surplus produce for direct procurement by businesses, hotels and restaurants. "They (hotel and restaurant chains) are, in any case, procuring fruits, vegetables, spices and food grains from local mandis or from some retail chains. What we are requesting them is to start buying directly from the FPOs, which are around that particular unit," Chaturvedi said.

Agriculture contributes 18 per cent of India's GDP while employing 46 per cent of the workforce, highlighting the income disparity between farm and non-farm sectors, Chaturvedi said.

The farm sector faces two major challenges: fragmented landholdings that limit scalability and bargaining power, and a significant gap between farmgate prices and retail prices, he pointed out. Direct partnerships with farming communities could help address this price gap, the secretary added. Chaturvedi said there was growing demand for pesticide-free and organic food, and noted that farmer clusters producing organic or natural produce could tie up with hotels for certified organic procurement.

On GI-tagged products, he said India has numerous registered food products beyond Basmati rice, including food grains, vegetables, fruits and processed foods. "I would also request that if you are able to promote those GI products across the country in your cuisines. I am sure many tourists will love to notice that this is a GI heritage of our country," he noted.