The Hindu : National : First national spot exchange for farm produce

Online edition of India's National Newspaper
Friday, Feb 11, 2005

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National

First national spot exchange for farm produce

By Our Special Correspondent

NEW DELHI, FEB.10. The Government today announced the setting up of the country's first national spot exchange for agriculture produce (NSEAP) linking all agriculture produce marketing committees (APMCs) with consumers and producers. The electronic exchange would enable agro-based industries to procure farm produce more cost-effectively using the support infrastructure of the NSEAP, while enabling the farmers to sell their produce at better rates and directly to corporates using the intermediary network of NSEAP.

MoU signed

The Union Agriculture and Food Minister, Sharad Pawar, presided over the signing of a memorandum of understanding between the Financial Technologies (India) Ltd (FTIL) and the multi-commodity exchange (MCX) combine with the National Agriculture Cooperative Marketing Federation of India Ltd (NAFED) here today. The State Bank of India would be the principal clearing and settlement bank for NSEAP, to ensure that money could be transmitted from one centre to another across the country.

National market

Mr. Pawar said the Government was planning to introduce a legislation to make warehouse receipts a negotiable instrument in order to attract increased lending by banks in the agriculture sector. Warehouses would be accredited and brought under the Negotiable Instruments Act.

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