Indian Sugar Exim Corporation (ISEC) along with NCDEX eMarket Ltd (NeML) today launched an electronic spot sugar market called ISeM that seeks to provide better price discovery and reduce intermediaries.
Presently, mills sell sugar through wholesale brokers/dealers passing through 4-5 level of intermediaries before it finally reaches to the end-consumer.
Speaking at the launch of Indian Sugar eMarket (ISeM), Food Secretary Ravi Kant said this is a "major milestone" after deregulation of the sugar industry by the government.
"I am sure the platform will help the sugar industry grow more competitive and would lead to a more transparent market," Kant said, and hoped that the mills will take benefits of this new platform though these are not very good times for the sector.
Highlighting key features of the e-sugar platform, NeML Managing Director and CEO Rajesh Sinha said it is a web based mechanism that offers efficient, transparent and real time trading for sugar and allied products.
Sugar, which is compliant with the FSSAI standards, is allowed to trade on the platform. Gradually, more varieties of sugar and allied products will be offered, he added.
This will benefit not only sugar makers but also bulk consumers, processors and the pharma industry, he added.
Already 300 members are registered on the ISeM including Kendriya Bhandar, Patanjali among others.
The trade volume will pick up in the coming days as more and more mills use the platform, ISEC Managing Director and CEO Adhir Jha said.
There are over 540 operational sugar mills in the country and also institutional buyers besides wholesalers and agents.
Disclaimer: No Business Standard Journalist was involved in creation of this content
