Govt Pushes FPO–Hospitality Partnerships to Boost Farmer Income, Supply Chains

Dr. Chaturvedi highlighted a key paradox plaguing the agricultural economy: farmers purchase inputs at retail rates but are forced to sell produce at wholesale prices, leaving them with low margins and high vulnerability.

 

In a major push toward building stronger linkages between agriculture and industry, Secretary, Department of Agriculture & Farmers’ Welfare, Dr Devesh Chaturvedi, has called on India’s hospitality sector to establish structured, long-term procurement partnerships with Farmer Producer Organizations (FPOs).

Speaking at the FPO–Hospitality & Farmers’ Benefit Summit 2025, organised by the Federation of Hotel & Restaurant Associations of India (FHRAI), Dr. Chaturvedi underscored that direct sourcing from FPOs is no longer optional—but essential—for ensuring stable access to high-quality, chemical-free produce while raising income security for millions of farmers.

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A Win-Win Model for Farmers and India’s Booming Hospitality Sector

Dr. Chaturvedi highlighted a key paradox plaguing the agricultural economy: farmers purchase inputs at retail rates but are forced to sell produce at wholesale prices, leaving them with low margins and high vulnerability.

Direct FPO–hotel linkages, he argued, can help correct this imbalance by:

• Eliminating multiple layers of intermediaries

• Securing stable, premium markets for FPO produce

• Creating predictable supply chains for hotels and restaurants

• Ensuring quality standards through long-term partnerships

• Enhancing farmers’ bargaining power and profitability

He emphasised that India now has nearly 40,000 Farmer Producer Organizations, many producing organic, region-specific, GI-tagged, and specialty ingredients that align perfectly with the hospitality sector’s rising demand for clean, sustainable, and traceable foods.

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Alignment with National Priorities

Reiterating Prime Minister Narendra Modi’s vision for deeper agriculture–industry collaboration, Dr. Chaturvedi said these partnerships will:

• Strengthen India’s food value chains

• Advance the goals of Atmanirbhar Bharat

• Promote organic farming and GI products

• Reduce post-harvest losses

• Expand the hospitality sector’s contribution to GDP

• Generate additional employment in rural and semi-urban areas

He cited the acclaimed Kumarakom Model in Kerala—a globally recognised responsible tourism framework—as an example of successful community–industry integration benefiting both farmers and tourism stakeholders.

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Tourism Ministry Calls for Structured Partnership Architecture

Shri Suman Billa, Additional Secretary & Director General, Ministry of Tourism, said that India now needs a fast-tracked, institutionalised model for farmer–hotel partnerships.

He stressed that tourism-driven value chains should increasingly incorporate:

• Local farmers

• Rural artisans

• Regional produce

• Sustainable food systems

Such models, he said, not only uplift rural communities but also enrich India’s tourism experience through hyper-local, culturally rooted offerings.

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Industry Expresses Commitment, Seeks Stability

FHRAI President Shri Surendra Kumar Jaiswal reaffirmed the hospitality sector’s readiness to procure directly from FPOs, noting that hotels are eager to onboard FPOs as preferred suppliers—provided:

• Supply remains consistent

• Quality is uniform and certifiable

• Produce is traceable and sustainably grown

Mr. M. P. Bezbaruah, Secretary-General of the Hotel Association of India (HAI), reiterated the long-standing industry demand to grant infrastructure status to hotels, a move he said would unlock significant investment and expand the scope of national farm-to-hotel supply chains.

Senior industry leaders including Mr. Rahool Macarius (Wyndham Hotels), Mr. Vishvapreet Singh Cheema (Lemon Tree Hotels), and Ms. Ankita Jaiswal (HRANI & UPHRA) also spoke about the operational opportunities and challenges of integrating FPOs into mainstream procurement.

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A National Blueprint for Farm-to-Hospitality Supply Chains

The technical session, moderated by noted food writer Shri Sourish Bhattacharyya, brought together sector experts who presented a workable, scalable roadmap for linking farmers with institutional buyers.

Key contributors included:

• Ms. Asha Sota (MoAFW)

• Shri Vijay Pratap Singh Aditya (Ekgaon Group)

• Shri Kirti Prasanna Mishra (Ecociate Consultants)

• Shri Ashwni Kumar Goela (Radisson Hotel Group)

• Ms. Meena Bhatia (Le Meridien, New Delhi)

• Chef Davinder Kumar and Chef Rakesh Sethi

They outlined strategies for:

• Ensuring quality and food safety compliance

• Creating aggregation hubs near FPO clusters

• Building digital marketplaces and traceability platforms

• Setting up logistics and cold-chain solutions

• Drafting long-term procurement contracts

• Implementing training programmes for FPOs on grading, packaging, and standards

The session marked the creation of one of India’s first multi-stakeholder national frameworks for integrating agriculture with the hospitality supply chain.

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FPO Exhibition Showcases India’s Agricultural Diversity

A major highlight of the Summit was a curated exhibition of 50 FPOs from 17 states, featuring some of India’s finest regional and GI-tagged produce such as:

• Yellow tea

• Kashmiri mamra almonds

• Himalayan saffron

• Makhana

• Black turmeric

• Forest honey

• Katarni rice

• Kandhamal haldi

• Traditional millets, pulses, spices, oils, and artisanal foods

The exhibition gave FPOs unparalleled visibility into institutional market needs, enabling real-time engagement with procurement teams from major hotel chains.

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A Transformational Step Toward Farmer-Led Growth

The FPO–Hospitality Summit 2025 has laid the groundwork for a new integrated model of agricultural commerce—one that empowers farmers, reduces supply chain inefficiencies, enhances quality standards, and supports India’s growing tourism and hospitality ambitions.

With government support, industry readiness, and strong farmer participation, India is poised to unlock a high-impact farm-to-fork ecosystem that benefits rural livelihoods and strengthens the country’s agricultural and services economy.