Vijay Mallya-controlled Mangalore Chemicals and Fertilisers Ltd (MCF), has decided to spend close to Rs 500 crore over the next five years to establish the network, which includes setting up of collection and distribution centers, processing, grading, packing and cold chain.

The company, which intends to establish 20 collection and distribution hubs, has already set up two centers in Hassan and Chikmagalur on a pilot basis. The company has recently joined hands with 2740 farmers with an area of 4,716 hectares in these two districts.

The firm is currently buying vegetables, potato, paddy, red gram, Bengal gram, maize, soyabean, onion and barley.

Presently, MCF has facilities for cleaning, grading, sorting the vegetables and cold storages to store.