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Our Bureau

Hyderabad , Aug 10

JUPALLY Agro Products Ltd (JAPL), a Hyderabad-based, company has entered into an agreement with Miller and Smith Foods Inc for export of gherkins (tender cucumber) to the US and Canada.

Under the agreement, the 100 per cent export-oriented unit (EOU), Jupally Agro, has been awarded a Rs 1.5-crore order initially by Miller and Smith for the supply of gherkins, according to Mr J.S. Rao, the company's Chief Executive Officer.

To fulfil the buyback arrangement, JAPL, has invested over a crore of rupees to establish a processing unit on the outskirts Hyderabad. The plant has the capacity to process two tonnes a hour.

By February 2006, the company had to supply 700 tonnes of gherkins, Mr Rao told Business Line.

The unit was formally inaugurated today by Mr Milind Pandit, a senior executive of Miller and Smith, based in Ontario, Canada.

JAPL has tied up with farmers in Vikarabad, Huzurabad, Shankerpalli etc for growing gherkins through contract farming.

The company was supplying seeds, fertilisers and buying the products by offering a good price to the farmer, Mr Rao said.

Hoping to break even in two years, Mr Rao said the company would diversify into other processed products gradually. "There is immense potential, if we can organise quality product and a good price," he said.

Mr Milind Pandit said Miller & Smith imported gherkins from India to meet the demands of the US, Canada, East European countries and Russia. JAPL is the latest among a growing number of supplier's with whom it has tied up in Karnataka and Tamil Nadu.

He said gherkin's were eaten as snack food. India exports about 35,000-40,000 tonnes of gherkins with an export earning of around Rs 250 crore a year to various countries.

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