Why In News?

• Foundation laying of Pepsico Rs 778 crore project has started in Nalbari Assam.
• The Pepsico plant which is expected to be operational by 2025, will provide direct employment to 500 people besides creating a multi-stakeholder downstream chain which stands to benefit from it.
• Local farmers from Assam will also benefit from it since PepsiCo will engage into contract farming with local farmers.

Background:

=> About 3 years ago PepsiCo announced that it will set up a greenfield project in Assam.

=> It will produce Lays Potato chips and Kurkure Corn puffs.

Contract Farming:

=> Contract farming is the process of agricultural production carried out according to an agreement between companies, government bodies or individual entrepreneurs on one side and farmers on the other which establishes conditions for the production and marketing of farm products.

=> In this process, the farmer agrees to provide established quantities of a specific agricultural product, meeting the quality standards and delivery schedule set by the purchaser.

=> PepsiCo has said that it will provide seeds to farmers.

=> It will also support the farmers in technical upgradation.