Having formally launched an e-market exchange for spot trading of agri-commodities in Gujarat, National Agriculture Produce Marketing Company of India (NAPMC) now plans to roll out the exchange in seven other states.
National APMC aims to start its operations in Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Uttar Pradesh and West Bengal. “We have already applied to the respective state governments for their nod to launch spot exchange operations in the states. NAPMC can start trading in these state within a year or so, subject to the state governments’ approval,” said Joy I Cheenath, CEO, NAPMC.
In February this year, NAPMC announced the launch of its e-market exchange in Gujarat. So far, it has connected 15 APMCs to the exchange and expects to have 250 members by the end of April.
“Trading in the spot exchange will start in April and we have sought Gujarat government’s approval to add eight more commodities for spot trading. These commodities include mustard, groundnut, sesame seed, wheat, paddy, bajra, potato and onion,” added Cheenath.
Currently, the exchange has permission to undertake spot trading of three agri commodities, namely, castor seed, jeera (cumin) and cotton.
“As the the season of these commodities is almost nearing to its end, we have asked the state’s approval to kick-start trading in more commodities,” he stated.
It may be mentioned here that NAMPC has also sought the Government of India’s nod for starting intra-day trading in its e-market exchange.
National APMC is co-promoted by Neptune Overseas and Gujarat Niyantrit Bazar Sangh (GNBS), an apex body of all the existing APMCs in Gujarat. National Multi-Commodity Exchange of India (NMCE) founder and managing director Kailash Gupta-promoted Neptune Overseas holds 75 per cent holding in the spot exchange, while GNBS has 25 per cent share. National APMC has brought in select APMCs or mandis for rolling out the e-market exchange and it will adopt the same model in other states where it plans to start its operations.
“The exchange will bring in more transparency by eliminating intermediaries. As a result, farmers will have better returns on their produce and consumers will get better quality goods,” he said.
