Food Corporation of India (FCI) and NCDEX Spot Exchange (NSPOT), which is promoted by NCDEX, have signed a memorandum of understanding to sell wheat under the open market sales scheme in Andhra Pradesh.
NSPOT will provide the platform to FCI for bulk sale of wheat under the scheme. This would reduce the turnaround time for the flour millers in the state and they would also be able to see the stock position through the NSPOT platform. The agreement would allow both FCI and NSPOT to manage their funds effectively, according to a release.
The prices would be fixed by the Centre and there would be limited participation by flour millers of Andhra Pradesh, Rajesh Sinha, head of NSPOT, said.
NSPOT has already started the membership process for flour millers according to FCI guidelines.
As on November 30, 2010, NSPOT traded more than 50,000 tonne foodgrains, mainly oilseeds and pulses, on its trading platform.
It is now working with public sector undertakings like MMTC, Hafed and Rajfed and also with various state governments for modernisation projects, the release said.
