Seeks right to promote trading in select markets

Pratim Ranjan Bose

Plans on cards

Once the

mandis turn viable, they will be transferred back to the State Government.

50 per

cent of five lakh tonnes rice to be procured by NCMSL to come from Orissa.

Kolkata. Nov. 6

National Collateral Management Services Ltd (NCMSL), an NCDEX subsidiary, has proposed promotion of the mandi system in Orissa.

According to the proposal forwarded by NCMSL, the company wants the right to promote trading in select mandis by using its own staff.

"We will promote trading in mandis and once they are operational and viable we would transfer it back to the State Government," a NCMSL official said.

Apart from creating an organised wholesale market, the proposal, if approved, would necessarily offer NCMSL - which is due to promote electronic spot exchange in the country on behalf of NCDEX - in Orissa.

Referring to the company's recent experience in procurement of rice in Orissa, Madhya Pradesh and Bihar, the sources said that the absence of mandis leave sufficient scope of confusion in the valuation of the agri-produce.

Though we have reached the targeted level of procurement in all the States, it was comparatively easier to procure in Madhya Pradesh due to existence of an efficient mandi system.

Procurement

After a successful run in rice procurement last season, FCI has awarded contracts to NCMSL to procure five lakh tonne of rice during the current season in the three States. Almost half of the procurement would be made from Orissa.

The company has also applied for contracts for procurement of maize in Orissa.

Wheat procurement in Uttar Pradesh and Rajasthan did not find much success as the farmers found the minimum support price offered by FCI is significantly lower than the existing market price. "However, we have kept still the wheat tenders open in both UP and Rajasthan," the official said.

It may be mentioned that FCI had appointed NCMSL during the last season as part of its exercise to delayer the entire process and reach maximum benefit of the MSP to the farmer.

Negotiations

Meanwhile negotiations are underway with the State Government for appointing NCMSL for procurement of rice for FCI in West Bengal too. Though admitted that there was such a possibility, NCMSL official sources maintained that they were yet to receive approval from the Bengal Government for the same.

(This article was published in the Business Line print edition dated November 7, 2006)
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