NCDEX Welcomes the Government’s Decision to Promote a National Agricultural Market

NCDEX’s efforts to develop the primary markets in the country have found recognition in the Economic Survey 2014-2015. NCDEX welcomes the Central Government’s decision of approving a Rs. 200 crore Central Sector Scheme for promotion of National Agricultural Market.

Recognizing fragmented and distortion ridden agricultural market as the one of the most striking problems in agriculture growth, the Department of Agriculture (DAC) has issued a comprehensive advisory to states to go beyond the provisions of the Model Act and declare the entire state a single market with one license valid across the entire state. The government has also lauded The “Karnataka Model”, which is an initiative of Rashtriya e Markets Ltd - JV between NCDEX e Markets Ltd. (erstwhile NCDEX Spot Exchange Ltd.) and Government of Karnataka, as an exemplary example of single market. The Unified Market Platform (UMP) in Karnataka has been lauded for integrating all the mandis in the state into a single licensing system.

Mr. Samir Shah, MD & CEO, NCDEX, said “It is indeed heartening to receive this validation from the government. With the states being encouraged to adopt a single market model, allowing participation from consumption centres across the country, the vision to create a unified agricultural market across the country would soon become a reality. We remain committed to bringing the efficiencies of the financial market to the physical markets, enabling even the smallest farmer to get access to a wider market and enjoy the benefits of transparent price discovery.”

A year after the very first UMP in the country was inaugurated by Shri Siddaramaiah, Honorable Chief Minister of Karnataka, over 50 mandis in the state are integrated under the platform. The UMP brings the international best practices to offer risk management and trade fulfillment processes for spot markets in the state. The initiative is rooted in the successful implementation of the revolutionary Mandi Modernization program (MMP) by NCDEX and Karnataka State Government, which was started in Gulbarga in 2011.

The UMP provides an electronic auction system across the state for transparent price determination. It has a few firsts to its credit. It offers objective quality based trading in APMCs and has provided online access to all the APMC market functionaries. Participation is not restrictive and is open to participants across the state holding the unified market license from the state government. Farmers have the choice to sell in any regulated or private market in the State and get timely payment.

About NCDEX e Markets Limited (NCDEX Spot Exchange):

NeML is a wholly owned subsidiary of NCDEX –the leading commodities future exchange in India. It is the leading national electronic spot marketplace with active contracts in Maharashtra, Rajasthan, Karnataka, Madhya Pradesh, Gujarat, Kerala, West Bengal, Bihar and Andhra Pradesh. NeML provides electronic markets for trading in a host of commodities, both agricultural and non-agricultural to various market participants. NeML provides a comprehensive service basket including trade-facilitation, collateral management, logistics and supply chain management and clearing and settlement.