MUMBAI: National Commodity & Derivatives Exchange Ltd (NCDEX) today welcomed the Centre's decision to approve a Rs 200 crore Central Sector Scheme for promotion of national agricultural market.
"Our efforts to develop the primary markets in the country have found recognition in the Economic Survey, 2014-2015. We welcome the Government's decision of approving a Rs 200 crore Central Sector Scheme for promotion of national agricultural market," NCDEX said in a statement here.
Recognising the fragmented and distortion ridden agricultural market as the one of the most striking problems in agriculture growth, Department of Agriculture (DAC) has issued a comprehensive advisory to states to go beyond the provisions of 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 - a 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, the release said.
"With 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 would soon become a reality.
We remain committed on 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 benefits of transparent price discovery," NCDEX MD & CEO Samir Shah said.
Karnataka has over 50 mandis in the state, which are integrated under one platform. The UMP brings best global practices to offer risk management and trade fulfilment processes for spot markets in the state.
The initiative is rooted in the implementation of Mandi Modernisation program (MMP) by NCDEX and Karnataka government, which started in Gulbarga in 2011.