HPMC caps profits, cuts prices to be more competitive

Shimla, March 13

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The Horticulture Produce Marketing and Processing Corporation (HPMC) has slashed the rates of its products (agricultural inputs and farm tools etc.) to offer these at competitive prices to fruit growers.Until now, the HPMC products, most of which are offered in lieu of cash payment for the fruits acquired under the Market Intervention Scheme, were priced higher than the market rates.

“We have taken two major steps to offer our products at competitive prices. One, we have signed MoUs directly with the manufacturers for the supply of products. This has enabled us to get these products at reduced rates,” said Sudesh Mokhta, Managing Director, HPMC.

Earlier, the HPMC would empanel dealers of various companies for supply of these products. In that system, it failed to get discounted rates although it made purchases in bulk. “Secondly, we have capped our profit margin at 15 per cent for all products. For an important fertiliser like calcium nitrate, we have reduced our profit margin to just 5 per cent. This will make our products available at market rates or even lower than that,” said Mokhta.

Hitesh Azad, General Manager, HPMC, said the corporation got only a part of the 15 per cent profit margin they have fixed for their products. “We take money from banks at 9 per cent interest to make payments to manufacturers. So, our actual profit margin is only around 5-6 per cent,” Azad said.

Confirming that HPMC products were available at lower rates now, Progressive Growers Association president Lokinder Bisht said calcium nitrate and vermicompost were now available almost at the market rate. “The price of spray oil has also come down, but it’s still a little higher than the market rate. It will be great if the HPMC prices slide below the market rate,” he said.

Welcoming the HPMC move, Sanyukt Kisan Manch convener Harish Chauhan said it was government’s job to undertakings like the HPMC and Himfed to control market prices of agricultural inputs.