The National Commodities and Derivatives Exchange (NCDEX) is now in discussions with several state governments including Andhra Pradesh and Maharashtra to implement its mandi modernisation project.
"We have been approached by several state governments to start the project on a pilot basis, including a delegation from Uttar Pradesh. But, nothing has been finalised yet," Ramesh Chand HC, executive vice-president (south), NCDEX, said.
Currently, the firm is running the mandi modernisation project in Karnataka. "In Karnataka, the pilot was started in 2010, and we have recently completed the phase I. Out of 54 agricultural produce market committees (APMCs) in the state, we have covered 15 of them and we are trading eight commodities,"
Under the modernisation of mandi project, the firm provides facilities like grading, shorting and storage to the farmers at the mandi itself.
After the phase I in Karnataka, the phase II would involve 'standardisation and grading' - where the APMCs within the state will be integrated. And in the third phase, infrastructure and technology would be developed for web-based mandis in order to facilitate national trading, Vijay Kumar, chef business officer, NCDEX, said.
"Once the mandis will be interlinked and web-based, it will allow a trader to trade from any place, and it will increase competitiveness," he said addressing the media at its launch of 'Gold 100 gram contract' in Hyderabad. The contract is based on gold bars of 10 grams with 999 fineness.
"As the technology and infrastructure has already been built, it will take around six months time to roll-out the project in a new state (as opposed to Karnataka, where it took nearly three years for the project to complete the first phase)," he said.