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Home Environment

How Nestlé and ITC are adding value to agriculture

India CSR by India CSR
in Environment
Reading Time: 3 mins read
India CSR

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There are various reasons which vary from product to product in the market scenario and sometimes the reduction can largely be due to a lack in supply chains, market losses, and shifts in the rate of consumption. But with the stand of some multinational companies, it could be possible to some extent. Nestlé and ITC are two such companies that have got a solution to this.

Nestlé has set up its coffee demonstration farms in India to help farmers improve quality, productivity, and sustainability. The company providing help to the coffee-growing farmers in the states of Karnataka, Kerala and Tamil Nadu to advance their agricultural trade practices as demand for Nescafé soluble coffee is high in India.

The company has provided farmers with high-yielding and disease-resistant plants developed by its research and development centers. With this initiative, the company has sought to source coffee sustainably by working effectively with some Indian coffee farmers and has fixed the competitive prices, transparency, and hence its accountability.

Similarly, ITC has a sharing of the economic package of Rs. 1.63 lakh crores announced by the government of India for farm and allied sectors of agriculture, this amount would empower farmers, strengthen agri-business sectors, food processing sectors and enable agriculture skill resources. This will make sure the infrastructure can help to reduce food wastage in the country and also confirms the availability of good quality local produce for food processing industries and will generate employment. 

Major Objectives

Farmer’s comprehensive growth and viable livelihoods

The major focus is on farmer’s development and aims to ensure succeeding communities while admiring the natural capital. The companies will work at both a farm and community level to improve yields, buffer incomes, contribute investment, training laborers, and make a difference to overall farmer’s quality of life.

Adding value to agriculture trade practices

As far as the agriculture trades are concerned, some major steps are in the right direction. The kind of policy that measures that these two companies need to ensure that there is freedom for the farmer and for the farming section to sell the commodities that will give them the best realization. Every investment made by them will help the firms to realize the goal of maximizing farmers’ income as well as developing massive employment in the food processing sector and rural agro-based sectors.

Benefits to shareholders

Connecting more and more share value is the rudimentary principle of this business structure. This aims at creating value for both shareholders as well as society at the same time. For long term business and profit the two firms has create and still creating values for various shareholders for the communities in which the business is running. 

Making a sustainable livelihood

The company’s businesses would create a sustainable livelihood for around 60 lakh people. It is possibly expected that ITC and Nestlé will be able to support over 100 lakh sustainable livelihoods by the year 2030 and are looking to register a revenue of approximately Rs. 1,00,000 crores from the new Fast-Moving Consumer Goods (FMCG) businesses.

In such a challenging situation the vision pronounced by the Prime Minister of India majorly aims to double the farmers’ income by the year 2022 is indeed commendable and gives a big opportunity to escort in the next agricultural mutiny.

Tags: Agriculture in India

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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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