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Now, fruit and vegetable farmers will have a platform to sell their produce at prices higher than current ones. And, for quality produce, they may even get a premium. This will be made possible by a joint initiative of the Small Agribusiness Farmers’ Consortium (SFAC) and the NCDEX Spot Exchange.
SFAC, which has taken an NCDEX Spot Exchange membership, will sell farmers’ produce (fruits and vegetables) on the exchange’s platform. For this, its network of farm producers’ organisations will act as collection centres. NCDEX Spot Exchange is also identifying quality and assaying agencies to certify the quality; prices will be based on the grades of the produce.
“Farmers will benefit, as they will get the prices at which the produce will be traded transparently on the exchange; farm producers’ organisations will act as aggregators and sell on behalf of farmers,” said Rajesh Sinha, head, NCDEX Spot Exchange.
Initially, the scheme will be implemented in places that have adequate storage infrastructure. Graded commodities will be offered on the exchange by farm producers’ organisations; buyers could be traders, organised retail chains or food processors. Farmers will be paid the price once the commodity is sold. To decide the margins, the exchange is studying various possible scenarios. Trading under this arrangement is expected to begin in one-two quarters.
