FMTC Adopts New Strategy: Collaborates with Local Governments for Business Expansion

The state-owned Food Management and Trade Company Limited (FMTC) has adopted a new strategy to expand its food trade business by partnering with local governments. Under this initiative, the FMTC has already reached understandings with 100 local bodies and plans to formalize agreements to move forward as per the company officials. FMTC’s departmental manager, Bhesh Nath Neupane, and representatives of the respective local governments signed the agreements on behalf of their respective organisations.

The strategy ensures local government collaboration in the company’s trade operations. Under the agreements, the company will establish sales and procurement centers in all 100 participating localities. These centers will sell company-produced food items such as rice, lentils, pulses, ghee, oil, and flour, and purchase locally produced agricultural commodities, according to Madhav Mishra, the company’s information officer.

FMTC has given priority to local governments in Karnali and Sudurpashchim provinces. The state-owned company will purchase locally produced items including maize, buckwheat, soybeans, millet, barley, and Marsi rice. Participating local governments are required to provide warehouses with a minimum three-month storage capacity, along with electricity, internet, water, and suitable spaces for the sales and procurement centers, free of cost.

Mishra said the initiative aims to facilitate sales of company products and ensure proper market access and fair pricing for locally produced agricultural goods. “Our primary goal is to sell our products below market prices while guaranteeing farmers a fair price for their produce,” he said.

The company noted that farmers often face challenges when the government sets minimum support prices but delays or avoids procurement. This new collaboration is expected to partially address that issue. Costs for warehouse provision, electricity, and establishment of centers will be borne by the local governments, while the FMTC will cover expenses related to transportation, sales management, and marketing. The agreements are set for a minimum of five years and can be revised as needed.