NCDEX Spot, Origo Commodities sign MoU

An agriculture commodity price realization and financing initiative for farmers

July 30, 2013 3:08 IST | India Infoline News Service
NCDEX Spot exchange (NSPOT) signed a memorandum of understanding (MoU) with Origo Commodities India Pvt Ltd to facilitate a platform for the farmers to help them place their produce directly on NCDEX spot exchange through the Primary Agriculture Cooperative Societies (PACS). Building the PACS is a part of NABARD’s initiative to create a commodities multi services centers in Andhra Pradesh to enable the farmers to avoid distress sale.

In this process, NCDEX spot exchange will support the farmers by helping them reach the buyers / processors directly, which will result in better price realization and also help in lowering the supply chain costs in the agricultural commodity gamut. Farmers can see the bids for their produce online at the PACS Centers & can then decide the selling price of their produce.

NCDEX Spot platform will also enable the PACS in creating price transparency for farmers. As a result, farmers are expected to derive significant benefits including best price realization for their commodities.

Around 60 PACS would be registered under WDRA in the first phase on NCDEX Spot as a participant and about 10,000 farmers will have access to the exchange platform.

Origo Commodities will manage all the warehouses under this project and PACS warehouses will be the integration centers for Pre Harvest and Post Harvest Services. Going forward NCDEX plans to encourage the farmers to participate on the future exchange, which would yield enhanced benefits to farmers.

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