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Shri Sharad Pawar, Minister of Agriculture, Consumer Affairs, Food and Public Distribution is scheduled to inaugurate the electronic linking of APMC(Agricultural Produce Marketing Committee) markets in Maharashtra tomorrow. This initiative to be implemented by Multi Commodity Exchange of India Ltd. (MCX) is to provide a common Indian Market for agricultural produce as envisioned by the Government. This network would also be used for the National Spot Exchange for Agriculture Produce (NSEAP).
MCX has tied up with Maharashtra State Agricultural Marketing Board (MSAMB) to electronically network the APMC yards in the state of Maharashtra and flag off this landmark initiative, which is going to revolutionize the Indian commodity sector in general and the agriculture sector in particular.
In the first stage, MSAMB would provide prices of various commodities from various APMCs in Maharashtra to MCX for redistribution in a national level through trading terminals and website. In turn via the same connectivity, MCX shall provide national level future and spot ( as polled by the exchange) prices of various commodities to MSAMB for redistribution to the entire state.
MCX will also install price tickers (approx. size 4 ft x 5ft) at strategic locations in the various APMCs. These tickers will disseminate future prices of various commodities along with MCX polled sport prices. Subsequently, MCX will also link the sport prices of Agmarknet in this price feed. This will lead to capturing and dissemination of real-time prices of all commodities and all markets, which will bring in more transparency in trading and also enable more accurate price discovery of various agricultural commodities.
In the second stage, the network established by MCX and MSAMB will be used by farmers, co-operatives and intermediaries in the APMCs for trading in commodities. Commodity specific grades, quality standards and delivery and settlement mechanism shall be laid down by NSEAP. This initiative will integrate the fragmented markets, create a new distribution channel for procurement and sale and enhance consumer-producer interaction with minimum intermediation. The Model APMC Act would be a facilitator for this electronic spot market to expand further.
Thus, the entire initiative will lead to development of a competitive, alternative, efficient agri-marketing chain in Maharashtra and subsequently all over India. This network will ultimately lead to creation of a national level spot market for agricultural produce and a “Common Indian Market”.
SBK/ BS
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