NCDEX in talks with state govts for upgrading APMC markets

Commodity exchange NCDEX today said it is in talks with various state governments for upgrading agricultural produce marketing committee (APMC) markets on a build-operate-transfer basis.

"We have submitted a proposal for upgrading APMC markets in Rajasthan, Karnataka, Maharashtra and Madhya Pradesh on a build-operate-transfer basis," NCDEX Spot Exchange Executive Vice-President Rajesh Sinha said.

He said the company has earmarked a budget of Rs 1 crore for upgrading each one of these markets.
    
"We would equip them with an electronic exchange and these would also be linked with others in different parts of the country, thereby creating a nationwide data bank for agri -produce in the country," Sinha said.
    
The company will undertake these upgrade projects through its subsidiary, NCDEX Spot Exchange (NSPOT).
    
NSPOT will operate the market for 10 years, following which it will be handed over to the mandi. NSPOT will work on continuous improvement of operations and integrate these markets with continuous online electronic markets before handing them over, he said.
    
Asked about the total investment involved, he said, in the next five years, the company is expected to spent around Rs 100 crore on various upgrade programmes.
    
Speaking about NSPOT's achievements, Sinha said during the first half of the current fiscal, more than 35,000 tonnes of foodgrains were traded on the exchange.
    
Trading in other agri-commodities will also be started on NSPOT, he added.