The Hindu Business Line : Himalaya takes up contract farming of culinary herbs

"In the first phase, the cultivation of culinary herbs namely Dill, Basil and Thyme have been taken up on a commercial scale. These culinary herbs are also having medicinal and aromatic values due to which there is a good demand in overseas markets," Mr Man Mohan Malik, Chairman of the company, told Business Line.

The company has made backward linkages into agriculture through this contract farming arrangement with farmers at Paonta Sahib. This type of farming is being undertaken for the first time in Himachal Pradesh.

Under this programme, a package of crops is given to the farmers and the quality seeds and other agriculture inputs are arranged by the company apart from providing the regular technical guidance of the experienced agricultural experts of the company to the farmers.

"The entire produce of the herbs is purchased by the company at rates fixed in advance," he said.

"The results are encouraging. A total of 150 farmers are being involved during the current year and anticipated volume of frozen herbs should be 1,000 tonnes," Mr Malik said. The company aims to cover 5,000 acres of land in Himachal Pradesh under this programme by 2009.

The food-processing plant located at Paonta Sahib has started with production of canned mushrooms, IQF vegetables, fruits and mushrooms in February 1996.

The mushroom division has a technical collaboration with a reputed US company. Himalaya International has received an export order for 1.5 million lbs of IQF button mushrooms, to be shipped by September 2005. The order is valued at $1,545,000, he said. It exports its quality products like mushrooms, vegetables to the US market.

The company sees huge potential in this segment, as the world market for culinary herbs is valued at $2.3 billion, Mr Malik said.

"The company has changed its focus for value-added products rather than commodity products such as canned mushrooms," Mr Malik said.

"The company has established its own marketing and warehousing network in the US. The major products are frozen button mushrooms for breading industry. It has launched its cheese stuffed mushrooms in the US market," he added.

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