New NCDEX model for farmers

The National Commodity Derivatives Exchange Limited (NCDEX) is planning to implement a new model, which will enable small and marginal farmers to pool their products and sell on the exchange platform.

The exchange has sought inputs from corporates engaged in commodities' trade in rural areas for implementing the scheme.

Speaking on the sidelines of a seminar organised by the Confederation of Indian Industries (CII), Unopom Kausik, chief business officer, NCDEX, informed that the exchange would come up with a final blueprint of the scheme in the next two to three months, as certain regulatory approvals were needed before implementing the project.

"There are issues pertaining to margin and quality of products, which need to be sorted out before a workable model can be devised. Some changes are also needed from the regulator's side," he said.

Earlier, NCEDX had entered entered into a similar agreement with The Haryana Cooperative Supply and Marketing Federation (Hafed) for hedging wheat. For implementing the plan, NCDEX would need to rope in rural bodies like the cooperative organisations or non-government organisations (NGOs), which can pool the products and sell it on the NCDEX platform, on behalf of the farmers.