Agri Business

NeML keen to partner with Rubber Board for online trading of NR

V Sajeev Kumar Kochi | Updated on July 02, 2020 Published on July 02, 2020

The e-trade platform is envisaged as a trade facilitation platform where buyers and sellers can bid for the required quantity of rubber   -  The Hindu

NCDEX eMarkets Ltd (NeML), the multi-commodity exchange, intends to participate in the Rubber Board tender for setting up an e-trading platform for natural rubber.

“The EOI which has been floated by the Rubber Board is to select a technology partner. The auctions will be conducted by the Board itself. We are participating in the EOI as a potential technology partner,” said Rajesh Sinha, Managing Director and CEO of NeML.

“Any electronic auction/market has its own advantages over open outcry. This has been well established in terms of transparency, scale and ease of operations. We do see benefits to both the buyer and seller over a period of time,” he told BusinessLine.

Benefits of fair price discovery

The segment will see the benefits of fair price discovery and increased volumes as more participation is expected as it gets electronic, he said.

According to Rubber Board officials, the electronic platform has been contemplated to complement the existing system of dealer-processor-manufacturer based supply chain by encouraging them to participate in electronic trading. This is also in line with the government’s policy to initiate e-trading for all agricultural commodities. Growers’ collectives such as Rubber Producer Societies, cooperatives, Rubber Board-sponsored companies, and small scale rubber dealers who are operating at the village level also will be encouraged to participate in the platform for better visibility and price discovery.

The e-trade platform is envisaged as a trade facilitation platform where buyers and sellers can bid for the required quantity of rubber, the officials added.

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Published on July 02, 2020
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