NCMSL to connect commodity traders

The National Collateral Management Services Limited (NCMSL), a Mumbai-based company offering risk management solutions in the area of commodities and inventories, is now also looking at providing market linkages to its clients.

The company's aim is to bring together sellers and buyers of a particular commodity through its chain of 50 warehouses in the country and also ensuring better prices to the farmers.

NCMSL is already in talks with two Singapore-based trading firms "" Agrocorp and Parsram Brothers "" to purchase goods stored in its warehouses in the south. Besides, it is looking at other markets like Malaysia and Burma as well.

Currently, the company has roughly 100,000 metric tonne of chilli and 12,000 metric tonne of maize in its warehouses.

Parasara Madhavan, manager, south, NCMSL, said bringing traders and sellers together means that a farmer would earn at least Rs 600-700 per quintal as this would eliminate commission agents.