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| Orissa inks MoU with NSEL for electronic trading of agri-products |
| BS Reporter / Kolkata/ Bhubaneswar Sep 15, 2009, 00:52 IST |
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The Mumbai-based National Spot Exchange Ltd. (NSEL) today signed a Memorandum of Understanding (MoU) with the Orissa government (Cooperation department) for establishment of electronic trading facilities for agri-products.
Chandrashekar Kumar, director, agricultural marketing of Orissa government and Anjani Sinha, managing director and CEO, NSEL, signed the document.
Speaking on the occasion Sinha said, Orissa, where more than 40 percent of the total land is under agri cultivation, needs an institutional support to provide a pan India market linkage to its farmers. NSEL will create this linkage between Orissa farmers and other physical market players by extending the electronic trading platform.
While the initiative will empower the farmers and enhance their price realization, it would also provide them the facility for financing against warehouse receipts. After Rajasthan, Madhya Pradesh and Maharastra, Orissa is the fourth state which has entered into an agreement with the NESL.
U P Singh, secretary, agriculture and cooperation department said, the proposed system will ensure better price and prompt payments to the farmers selling their produce.
The seller will be able to sell his produce electronically. Since the role of the middlemen will not be there, it will create win-win situation both for the buyer and the seller of the agri-products. Initially trading will be held in cotton, groundnut, rice, maize, pulse and turmeric and later it will be expanded to other products in the state.
Sinha said, NSEL has plans to set up an e-market facility in Orissa and hopes to procure different items including paddy. The trading will start after the government provides the required permission after signing of the MoU. Speaking on the occasion, state agriculture and co-operation minister Damodar Rout said, the agricultural marketing in the state is still lagging behind and there is vast scope for development on this front. The effective implementation of the system will be ensured to benefit the farmers. Development Commissioner S P Nanda said, the new system will provide a mechanism for the farmers of the state to be integrated with the national market. It will upgrade the level of agri-product marketing in the state.
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