Pepsico takes measures to ensure potato supply in India.

Having faced sourcing issues for potato in 2008, food and beverage major PepsiCo is planning to ensure supply by introducing farming equipment and technology and new potato seed varieties to decrease chances of crop loss. It also aims to increase the acreage under contract farming by entering new states across the country.

The company is introducing direct seeding and harvesting equipment given the low mechanisation involved in cultivating food-grade potatoes in the country, which leads to loss of yield. It will also bring in new instruments to achieve sustainable irrigation and water efficiency in the fields specially for paddy farming. This is in line with PepsiCo’s aim to achieve positive water balance this year.

PepsiCo, which has introduced six high-quality, high-yield potato varieties in the past, will also introduce new potato varieties in India this year.

Frito-Lay, the food arm of the company, uses around 150,000 tonnes of potatoes per annum for its products, 50 per cent of which comes from contract farming. PepsiCo has partnered with more than 10,000 farmers working in over 12,000 acres across Punjab, UP, Karnataka, Jharkand, West Bengal, Kashmir and Maharashtra for the supply of potatoes.

In 2008, PepsiCo faced shortage of process grade potato due to crop failure in Maharashtra on account of drought, in Karnataka due to late blight and in Punjab due to frost. This led to a short supply of some of the faster moving products for PepsiCo’s potato chip brand Lay’s.