BSE rolls out e-agricultural spot market platform

The Bombay Stock Exchange on December 11, 2020, launched an electronic spot platform, ‘BSE E-Agricultural Markets Limited’ or BEAM, for the agricultural commodities through its subsidiary BSE Investments Limited.

The platform started the beta operations on December 11and facilitated the transactions across value chains consisting of producers, intermediaries, consumers as well as ancillary services. BSE also witnessed trading of two tons of imported almonds in value of more than Rs. 6 lakh on the launch day of BEAM.

As per the statement by BSE, BEAM will function as a national level, electronic, institutionalized, transparent commodity spot trading platform which will also be in line with PM Modi’s vision of creating a single market.

@BSEIndia launches e-Agricultural spot market platform “BEAM - BSE E -Agricultural Market Ltd.”@ashishchauhan @NeerajK_ @SameerPatil2019 @rsinhak pic.twitter.com/6T2iqdN8Q5

— BSE India (@BSEIndia) December 11, 2020

Significance of BEAM:

As per the CEO of BEAM, Rajesh Sinha, India needs a dedicated e-market platform for the agricultural spot markets that will have no conflict of interests to promote the interests of the producers.

BEAM will be the only company in India which will fulfill this requirement. It will play a significant role in creating an efficient spot market for agricultural produce in the country. It will also work closely with the value chain participants.

Features of BEAM:

• BEAM will have state-of-the-art-technology for offering customized solutions to the farmers, traders, and stockholders for facilitating a risk-free purchase as well as the sale of various agricultural commodities.

• It will ensure enhanced producer realization, lower cost of intermediation, more competitive consumer prices, and improved procurement efficiency.

• BEAM will help in removing the bottlenecks associated with trading and procurement.

• With the help of the platform, farmers in one state will easily be able to reach out to the markets of other states and will be able to auction their produce.

• BEAM will not just help farmers and the farmer collectives for discovering the best prices for their produce based on its quality but will also help in building capacity to help processors, intermediaries, and exporters procure from states.

Objective of BSE behind the launch of BEAM:

According to MD and CEO of BSE, Shri Ashish Kumar Chauhan, BSE plans on leveraging its state-of-the-art technology and nationwide distribution network for providing a world-class framework for agricultural commodities to the benefit of the Indian economy and farmers.

Direct access to multiple buyers, a regulated and transparent marketplace, reduction in intermediate costs, and the receipt of cash directly into the account of beneficiaries are some of the major benefits of the newly launched platform.