The warehouses of Primary Agriculture Cooperative Societies (PACS) in Mahabubnagar and Kurnool districts of Andhra Pradesh were linked with the National Commodities Exchange (NCDEX) spot exchange on 5 August 2013.
As a part of this initiative eight PACS had received the membership certification, which would help the farmers to sell their goods on exchange platform. This is the first of its kind initiative in the country and was initiated by the National Bank for Agriculture and Rural Development (NABARD).
How this Initiative help farmers?
• The initiative will help in providing seamless access of national markets to farmers, whereby they can sell their produce through a computer-linked method.
• The computer-linked trading will ensure that farmers will get the best available price at the national level. The trading will ensure that sale of the commodity at a particular price is at the discretion of farmers helping them get the best price prevailing on the particular day.
• The spot exchange will support the farmers by helping them reach the buyers or processors directly, which will result in better price realization and also help in lowering the supply chain costs in the agricultural commodities gamut.
• This initiative is expected to change dynamics of the trade and supply chain of agricultural commodities with respect to the storage, commodity financing, trade facilitation, and other value added services that could make farmers a key point in entire value chain of agricultural commodities.
• NCDEX Spot platform will also enable the PACS in creating price transparency for farmers.
The National Bank for Agriculture and Rural Development (NABARD) joined hands with the Cooperative Central Banks (CCBs) of the two districts, AP State Cooperative Bank and NCDEX to make the linking a reality.
The new facility would ensure speedy payment of money to farmers, through the CCBs with core banking solutions, once the sale was completed.
National Commodity & Derivatives Exchange Limited (NCDEX)
National Commodity & Derivatives Exchange Limited (NCDEX) is a nation-level, technology driven on-line commodity Exchange. NCDEX is a public limited company registered under The Companies Act, 1956 with the Registrar of Companies, Maharashtra in Mumbai on 23 April 2003.