MCX arm awaits nod for procuring wheat, maize

The National Bulk Handling Corporation (NBHC), a commodity delivery arm of the Multi Commodity Exchange of India (MCX), is awaiting the Food Corporation of India's (FCI) approval to begin procuring wheat, maize and jowar on the latter's behalf.

FCI had recently permitted NBHC to buy paddy in Seoni, Madhya Pradesh. NBHC managed to procure 100 tonne of paddy here on its first day of operation. It procured 650 tonne in one week.

The quality testing team of the corporation (NBHC ProComm) is carrying out on-the-spot inspection and grading through quality kits. This ensures proper remuneration to farmers and adherance to the quality specifications of FCI.

The coporation is procuring paddy at Barghat APMC mandi of Seoni revenue district and its sub-mandi at Gangerwa. Encouraged by the good response from farmers, NBHC is seeking permission for buying paddy from West Bengal, Bihar and Uttar Pradesh too.

"Farmers in Seoni are happy as they are getting higher price for their produce since we buy from them directly. We also ensure a fast and accurate payment system which has made us a preferred choice," said Anil Choudhary, managing director and CEO, NBHC.

"Although no target has been set for the procurement, we aim to stock as much as possible without compromising on quality," Choudhary said.

Meanwhile, NBHC has already procured cardamom, arecanut, cumin seed and some other spices on behalf of private companies. Choudhary hoped that these private firms entrust NBHC with more procurement orders this year as well.

On spices procurement, Choudhary said, "These are niche products and are meant for exports. Hence, quality and timely delivery are key. We have been able to meet their demands using our networks."

NBHC was set up in April 2005 to control delivery of commodities that were not squarred off on the expiry of contract. Procurement is just an expansion of its activities, started off on demand from its customers.

"NBHC would play a key role in organised procurement of grains and spices through which farmers would get maximum return on their investment," Choudhary said.