The National Commodity and Derivatives Exchange (NCDEX) is planning to participate in the bidding process of Agri-Tech Infrastructure Fund (ATIF), which will be rolled out by the government to boost the agricultural marketing system.
"We will participate in the bidding process of ATIF as we have technology. We have already invested in technology to improve Agricultural Produce Market Committee (APMC) functioning.
"We have signed an agreement with the Karnataka Government to form a joint venture company to modernise APMC," NCDEX Managing Director and CEO Samir Shah said on the sidelines of a function here.
In order to develop a common national market for farm commodities through e-platform, the Department of Agriculture (DAC) has approved Rs 200 crore for a central scheme for promotion of agricultural market through ATIF to be implemented between 2014-15 and 2016-17.
Under the scheme, the government proposes to utilise the ATIF for migrating towards a national market through implementation of a common e-platform for agri-marketing across states. In the first phase, the Government will appoint a consultant who will outline the model of implementation.
Shah said NCDEX will bid during the second phase when the government will look for appointing a partner to provide technology in order to improve agriculture markets.
NCDEX will roll out pilots to modernise APMC in Tamil Nadu, Andhra Pradesh and Telangana. The leading commodity exchange is also in talks with States like Uttar Pradesh, Gujarat and Madhya Pradesh to modernise APMCs in line with Karnataka, he said.
Meanwhile, talking about the proposed merger of Forward Markets Commission (FMC) with Securities and Exchange Board of India (SEBI), Shah said NCDEX is looking forward to it and will launch new products after the process is over.
