Plummeting potato prices for three consecutive years have prompted farmers to switch to contract farming this season. For them, tying up with Frito-Lay India is the only alternative for an assured return.
PepsiCo Holdings India has doubled its target this year. It plans to rope in 9,000 farmers doing the job on 5,000 acres of land.
Assistant manager PepsiCo, Fritolay division Prabal Roy said: "We are not going for direct purchase from farmers. We are procuring the produce through vendors. Last year purchased 10,000 tonnes of potato and sent it our stores. We plan to procure 20,000 tonnes this season."
