Govt asks Hotels & Restaurants to Source Directly from Farmers, Promote GI Foods to Boost Rural Incomes

 

New web platform for FPO procurement in the pipeline; hospitality sector asked to champion authentic Indian produce

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The Union Government has asked hotels and restaurants across the country to buy produce directly from Farmer Producer Organisations (FPOs) to ensure better prices for farmers and reduce the role of middlemen. Agriculture Secretary Devesh Chaturvedi made the appeal on Monday at an event jointly organised by the Hotel and Restaurant Association of Northern India and the Agriculture Ministry.

“A Win-Win for Farmers and Hospitality Industry”

Chaturvedi urged hospitality chains to build partnerships with local farming communities for direct sourcing of:

• Fresh fruits and vegetables
• Spices
• Grains
• Organic and natural produce

India currently has 35,000 FPOs, including 10,000 formed under government schemes, offering hotels a wide and reliable network for procurement.

Direct purchases from FPOs, he said, would:

• Improve farmers’ incomes
• Reduce price gaps between farmgate and retail
• Ensure hotels get fresher, authentic, traceable ingredients
• Strengthen local agri-economies

Web Platform for Direct Procurement Coming Soon

Chaturvedi said the Agriculture Ministry is developing a web-based platform where FPOs can upload surplus produce for bulk procurement by hotels, restaurants, retail chains, and food businesses.

Hotels already buy substantial quantities from mandis and retailers, he noted. Redirecting these purchases to FPOs would create transparent, efficient, farmer-centric supply chains.

Bridging Structural Challenges in Agriculture

Chaturvedi pointed to two persistent issues in India’s farm sector:

1. Fragmented landholdings affecting scale and bargaining power
2. Large gap between farmgate and retail prices

He said direct partnerships with hotels could meaningfully improve farmer margins and address structural inequalities in the sector.

Agriculture contributes 18% of India’s GDP, yet employs 46% of the workforce — a disparity that direct sourcing can help reduce.

Rising Demand for Organic & Pesticide-Free Produce

Hotels were also encouraged to tie up with organic and natural farming clusters to meet growing consumer demand for:

• Pesticide-free foods
• Certified organic ingredients
• Traceable, sustainably grown produce

These partnerships could give farmers in such clusters stable, premium-price markets.

Promote India’s GI-Tagged Food Heritage

Chaturvedi urged the hospitality industry to spotlight Geographical Indication (GI) foods in their menus.

He mentioned that India has a wide range of GI-certified products beyond Basmati rice, covering:

• Fruits
• Vegetables
• Pulses
• Spices
• Processed foods

Promoting GI products, he said, would enrich culinary experiences for tourists and enhance India’s food heritage visibility.

Tourism Ministry: Authentic Food Is Core to Travel Experience

Suman Billa, Additional Secretary in the Tourism Ministry, backed the initiative, stating that tourists value authentic, local culinary experiences, which depend on fresh, responsibly sourced ingredients.

Hospitality Sector Responds

The Federation of Hotel and Restaurant Associations of India (FHRAI) committed to:

• Publishing a booklet listing FPOs, their produce, and contact information
• Creating a dedicated cell to connect hotels directly with FPOs

Industry leaders from Lemon Tree Hotels, Sarovar Hotels, and Wyndham Hotels attended the event and welcomed the initiative.