The Hindu Business Line : Online agri trade exchange: Traders' enrolment soon

Hyderabad May 1 National Spot Exchange Ltd (NSEL), which is hopeful of commencing electronic trade of agricultural commodities by the year-end, will enroll traders in two months. NSEL is an arm of Multi Commodity Exchange.

"We have initiated a nationwide campaign to educate farmers and traders on the NSEL activities and its advantages. Farmers would get better price realisation if they join the trading," said Mr Anjani Sinha, Managing Director and CEO.

Speaking to newspersons, he said that the exchange would first focus on Gujarat, Rajasthan, Kerala and Andhra Pradesh.

"We are in talks with all the States to make necessary regulatory provisions to facilitate setting up of centres."

Mr Sinha was here in connection with a seminar on futures and spot trading for farmers. Organised in association with Federation of Farmers' Associations and MCX, the seminar was aimed at informing farmers of the advantages of the exchanges.

Networked offices

NSEL will set up computer-networked offices in major arrival markets (like Nizamabad and Guntur) and warehouses to manage the commodities procured from farmers. To begin with, it would start operations in one or two places in each State.

"Initially, we will take warehouses on hire and manage them on our own. When it makes business sense, we will start our warehouses."

While the commodities trade on NSEL would be in resonance with those of MCX, the basket would be bigger.

Mr D.S. Kolamkar, Economic Adviser to the Forwards Markets Commission, said a Bill was likely to be introduced in the next session of Parliament to make the commission an autonomous regulatory body on the lines of the SEBI.

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