NBHC plans to start an electronic market platform outside the mandis

In one of the first moves after passing of the three agriculture Acts, National Bulk Handling Corporation (NBHC), a leading agri-warehousing services company, is planning to start an electronic market platform outside the mandis. 

This will complement its growing network of NABL-accredited quality testing and assaying labs along with existing storage infrastructure.

Likely to be called Krishi Setu, the platform is being planned on the lines of Amazon for agriculture goods. It will provide a transparent option for both buyers and sellers to trade outside the ambit of conventional mandis.

The company plans to start groundwork for a formal launch of the platform soon by getting in touch with farmer-producer organisations (FPOs) and other groups. It hopes to get the project up and running by June-end.

“The plan to start such a platform was already in the works for some time but the trigger was definitely the three Acts,” Ramesh Doraiswami, managing director (MD) and chief executive officer (CEO) of NBHC told Business Standard.

The new farm Act, particularly the one on trade, allows the setting up of electronic trading platforms outside the mandis dubbed ‘trade areas’. No cess or levy can be imposed by any state government on the electronic platform or the trader who operates in it.

The Act says the e-platform has to operate and register, according to norms laid down by the Centre and state governments. NBHC is wholly-owned by private equity major True North. Currently, it operates over 1,250 warehouses across the country having a total capacity of over 2.10 million metric tonnes. That apart, the company also has over 40 quality testing labs across India, of which five are accredited by bodies such as NABL and APEDA. The process to get accreditation for the remaining labs is on.

Doraiswami said NBHC is also looking to expand its network of accredited laboratories, which can test a variety of farm produce. It can match the needs of food processors and exporters.

The e-marketplace, along with the accredited labs and existing network of storages and warehouses, will enable the company to offer a full range of services to customers.

“Suppose Britannia wants quality wheat for its products, it can use our platform to purchase it and the firm would expect NBHC to provide the underlying collection, storage and fumigation services. This would ensure that the wheat it gets in the processing plant is of the right quality,” Doraiswami added.

Doraiswami said, according to estimates, the food products’ quality testing market in India is estimated to be around Rs 700-800 crore, and is growing around 10-15 per cent annually.