It aims at ensuring better price for farmers
HYDERABAD: In a bid to ensure better price for farmers, the National Spot Exchange Ltd for agricultural produce has decided to set up a network of electronic spot markets across the country by the year-end.
Stating this to reporters on the sidelines of a seminar on `Spot and future agriculture commodity market' here on Monday, Anjani Sinha, CEO and MD, said that the national-level electronic spot exchange would be set up which, in turn, would be linked to thousands of delivery centres for multiple farm products.
The seminar was organised by MCX, India's leading commodity exchange.
Mr. Sinha said that talks were being held with Andhra Pradesh and other State Governments to enable farmers trade electronically by relaxing relevant regulations. Once the electronic markets were in place, the reference price could not be manipulated by local traders.
This measure would reduce the number of intermediaries between farmer and consumer even while ensuring better price for ryots. The spot exchanges would be different from the futures market as they would be trading on a daily basis.
Bill on FMC likely
D.S. Kolamkar, economic adviser, Forward Markets Commission (FMC), said that a bill was likely to be introduced in Parliament in the next session to make FMC an autonomous regulatory body on the lines of SEBI.
Finance Minister K. Rosaiah stressed the need for allowing farmers to have a say in fixing the prices of agricultural commodities.