E-market and spot trading of agriculture produce will commence in the state soon. The state government has granted licence to the National Commodity and Derivatives Exchange (NCDEX) Spot Exchange Ltd, Mumbai, a Central government enterprise, to set up e-Market in the state with private investment. The licence will be in force for five years. Orders were issued to this effect on Thursday.
NCDEX will commence business using their electronic platform when the kharif produce hits the market this year. The NCDEX has informed the government that necessary arrangements in warehouses and other places will be taken up, before the commencement of actual business as has been the practice in other states and requested for issue of licence for establishment of e-Licence.
It may be recalled that the state government amended the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969 in February to grant licences for e-market. As the government granted licence to NCDEX on Thursday, it will have online trading and clearing system with national reach, when the kharif produce hits the markets.
The NCDEX will ensure efficient clearing, settlement and guarantee system. However, the electronic spot trading facility will be available in notified agricultural produce only. Grading, quality certification and standardisation of commodities, procurement and disposal of commodities through online trading system with national reach, providing market intelligence reports to farmers and other facilities will be provided by NCDEX.
The e-trading will help the farming community to get access to major markets and get good price.
Hitherto, the farmers had no access to major markets outside their areas and they were entirely dependent on the brokers to sell the produce.
The online trading facility at market yards would help turmeric, cotton and chilli farmers to get better prices.