M'shtra APMCs go online, hub at Pune

The Multi Commodity Exchange of India (MCX), the Maharashtra State Agricultural Marketing Board (MSAMB) and the National Spot Exchange for Agricultural Produce (NSEAP) have put 290 Agriculture Produce Marketing Committees (APMCs) across Maharashtra on the digital map with the launch of the 'Commodity Suchana Kendra' hub at the APMC, Pune.

Inaugurated by Sharad Pawar, the Union minister of agriculture, consumer affairs, food & public distribution, the Commodity Suchana Kendra will instantaneously link traders across Maharashtra with each other.

The idea is to furnish national spot and futures commodity prices alongside India's first Composite Commodity Futures Index, MCX-COMDEX, on a real-time basis to all the APMCs hooked to the Pune hub.

This signals a significant step forward, reaching into India's agricultural heartland of a 100 million people with accurate and real-time price information for farmers. MCX and the State Bank of India (SBI) will also ensure a continuous information supply on agriculture and banking sectors respectively.

Close on the heels of such electronic linkages in Haryana and Navi Mumbai, and in line with the flagging off in Delhi, this move consolidates the fragmented agricultural market, in its goal of establishing a common Indian market through efficient price discovery, where SBI will be the principal clearing and settlement bank.

It will help in linking support infrastructure from a single-point access, benefitting farmers, traders, consumers and other end-users of commodities. Disseminating reference national-spot and futures prices on a real-time basis will facilitate an efficient and common price discovery.

"Due to the commitment of the NSEAP and the MCX to sustain developing a national price discovery system it will foster an exponential change in the Indian agricultural markets. The electronic networking will build an integrated nationwide market, the biggest beneficiary of which will be the Indian farmer. He will be supported by a delivery system coupled with real-time price information, which he can harness to sell his produce at the best available rates. Currently, the price discovery in the spot market is distorted and dominated by local fundamentals. The farmers are disadvantaged due to lack of nationwide spot price discovery and dissemination mechanism. NSEAP has pioneered the initiative to link the APMC markets electronically to create a "Common Indian Market" as envisioned by the Union Government," said Pawar, who was the chief guest on the occasion.

"The state government is keen to develop synergy through partnership with leading organisations like NSEAP and MCX. With the administrative backbone of the government and the expertise of NSEAP and MCX, we can effect changes directly at the grassroots. This augurs a welcome future for all participants in the agricultural sector," Harshavardhan Patil, the honourable minister for marketing, EGS, Women & Child Development and parliamentary affairs, the government of Maharashtra, said.

"At the strike of a button, we are witnessing an extraordinary transformation. Two hundred and ninety APMCs get interlinked through the Pune APMC hub. The agro-reform in India is the largest retail story in the world, touching 100 million customers in the next three years. MCX, MSAMB and financial technologies have architected a technology centric ecosystem to create and host the next green revolution resulting in a common Indian market," Jignesh Shah, managing director & CEO, MCX, said.

"The partnership is exemplary because it harnesses the twin strengths of a state and leading corporate houses, and more significantly aims at developing the agro-sector through direct reach and action. It is a successful case-study to be replicated in other states, as well," Ram Kharche, managing director, MSAMB, said.