Land to be acquired in Paraguay, Uruguay by a group of 16 companies

In a novel move that could yield rich dividends, a group of Indian companies is all set to purchase land abroad for cultivation of crops needed back home. Sixteen companies mainly dealing in oilseeds are taking part in the initiative.

For starters, the experiment will be conducted on 10,000 acre of agricultural land in Uruguay and Paraguay at an investment of Rs 200 crore. The land will be used for soyabean and sunflower crop.

For surveying the land, Pune-based Pranav Agro Industries had led a consortium to Latin America. The government-run State Trading Corporation (STC) has also joined the consortium.

“Last year, about 14 of us in the oilseeds business went to Latin America to see what makes countries like Uruguay, Paraguay, Brazil and Argentina produce more oilseeds than we do. We meet 50 per cent of our oilseed requirement though import and anything from 10 to 40 per cent comes from Latin America, depending on the prices,” said chairman and managing director of Pranav Agro Industries, Pravin Lunkad, who is also the convener of the consortium

During the feasibility study, the group found several motivating factors. As compared to India, land productivity was very high but land prices were half in those countries. The farmers there rotated three to four crops a year and irrigation is not a necessity because of good rainfall.

“In addition, it’s possible to buy large tracts of land where hundred per cent mechanised farming can be carried out,” added Lunkad. All this propelled the consortium to invest in land in Uruguay and Paraguay where labour land and other logistics come cheaper as compared to Brazil and Argentina.

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