Procurement heads face a yearly dilemma: lock in prices via contract farming or play the spot market at local mandis?
The Risks of Spot Buying
Spot buying offers flexibility but exposes brands to severe price volatility, varying fruit sizes, and unverified pesticide levels.
The Contract Advantage
By signing forward contracts directly with FPOs, buyers guarantee a steady supply of specific grades (e.g., 35mm+ fruit size) at a fixed, predictable cost, ensuring uninterrupted factory production.
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