After its recent tie-up with National Remote Sensing Agency (NRSA) for using the latter’s satellite imagery service for its Tata Kisan Kendras (TKK), the Tata group is now all set to tie up with the US-based agro major Cargill.

The tie-up between the two giants would mainly entail wheat procurement for Cargill in India through the two Tata group promoted Rallis Kisan Kendras (RKK) and Tata Kisan Kendras (TKK).

Says the vice president-agri business of Rallis India, Brigadier JS Oberoi: "We are still in the process of negotiating with Cargill and mainly we will be enabling Cargill to procure wheat from various villages in India, with both TKK and RKK facilitating this process".

What benefits Cargill would accrue from the tie-up is still not clear as the US based company is an international marketer, processor and distributor of agricultural food, finance, industrial products and services. Cargill might directly distribute the procured wheat from India through its distribution channels or it could process and manufacture finished products out of the procured wheat, says a company official.

Further, company sources point out that if the negotiations are fruitful then, the wheat procurement project should hopefully commence by the end of April. "However, it will be on a relatively modest scale and will be a pilot project wherein the viability of the project will be tested", he says.

Cargill, USA provides distinctive customer solutions in supply chain management, food applications and health and management, with an annual turnover of nearly $560 mn.

In its efforts to grow its farm extention services initiative, Rallis India is planning to add another 6-8 RKK’s to its existing list of 4 kisan kendras this financial year. Currently, Rallis has its kisan kendras at Haryana for basmati rice, Karnataka for fruits such as fig, pomegranate, papaya, sapota and guava, Maharashtra for vegetables and in Hoshangabad for wheat.

The RKK’S were each set up at a cost of around Rs 8-9 lakh. However, this time the focus will be on making the kisan kendras cost effective.

The company plans to take up land on lease for the kisan kendras.