 "Farmers To Get 'Online Mandi' To Sell Produce")
Computers may soon turn to be the preferred marketplace of farmers to sell their produce, with the National Spot Exchange Ltd getting licences from three states to launch an agri e-trading platform.
Financial Technologies-promoted National Spot Exchange Ltd (NSEL) has received licences from Gujarat, Maharashtra and Karnataka governments to launch an electronic trading platform – Spot Exchange – where farmers can sell as low as one quintal of a product.
“We have started the membership drive across the country last week, which will run till June-end and then we will start pilot trading on our spot exchange,” NSEL managing director and CEO Anjani Sinha said.
Though Sinha declined to reveal the date of the expected launch of spot trading, market sources said it is likely to be sometime in mid-August.
To start with, the company would launch contracts in farm commodities such as oilseeds, pulses and spices, but would later extend to gold and silver.
“We have fixed the minimum size of contract at one quintal so that even marginal farmers get benefit from our spot exchanges,” Sinha said.
In the spot exchange, farmers will be able to sell their produce through the brokers, who will be licensed by the members of the exchange.
When pointed out that there will be as many middlemen in the spot exchange as in the physical market, Sinha said, the commission by all players – exchange, members and brokers – will be less than one-tenth of what is pocketed by middlemen in the mandi structure. (PTI)