The Indian agribusiness, Karuturi Global, is to outsource 20,000 hectares of land it had leased in Gambella Regional State to Indian farmers. The farmers are to cultivate the land on a profit sharing basis at a ratio of 65:35.   

The company plans to sub contract the land and necessary infrastructure to farmers who specialize in the cultivation of specific crops according to a senior Karuturi official. Karuturi has already had discussions with Punjabi farmers interested in this venture earlier this year, as part of its plans for expansion.

Karuturi hopes to have agreements with farmers for approximately 20,000 hectares as part of the first phase. The first phase will be completed by the end of the current financial year.

It is understood that Karuturi has engaged in agreements with South Indian farmers and some agri-commodity majors. It is expected that the company will eventually outsource an estimated 50,000 hectares.

Karuturi Global has leased 100,000 hectares already and expects to take a further 200,000 hectares after finalizing the first agreement, according to the Business Standard. The company hopes to grow a selection of crops such as cereals, paddy, maize and sugarcane, palm oil and other produce. It is expected to supply the high demand for these crops in Africa as well as involving in exports.

It is to be remembered that Karuturi experienced some set backs recently when its maize crop sown over 12,000 hectares was badly damaged by flashfloods.

Source: newbusinessethiopia.com