National Spot Exchange ties up with IL&FS

NSEL and IL&FS have signed a MoU under which the IT-enabled Common Service Centres (CSCs) will provide information to farmers on real time prices of agri commodities.

The Department of Information Technology has decided to establish 100,000 CSCs in rural areas in a year. IL&FS has been appointed the national level service agency for the scheme.

NSEL is looking to roll out spot exchanges in Maharashtra, Karnataka, Gujarat, Bihar and Kerala in August and a membership drive for the same is on since June 1.

The tie-up with IL&FS is a step towards backward integration with farmers, which is key for the success of this programme, NSEL Managing Director Anjani Sinha said. He said farmers could store their produce in NSEL-accredited warehouses and sell the products at a later date.

IL&FS Chief Executive Officer (CSC) Aruna Sundararajan said farmers could access NSEL through the CSCs. The IT-enabled CSCs are kiosks, which are manned by trained people and have computers with broadband facility. Sundararajan said the number of CSCs will go up to about 100,000 from the existing 8,000-10,000 in a year.

U K S Chauhan, managing director of NAFED and advisor in the agriculture ministry said NSEL will work under the domains of the Agricultural Produce Market Committee Act.

Highlighting that delivery is assured for both buyers and sellers which the exchange will guarantee, Sinha said delivery can be both physical and demat. He ruled out the possibility of intra-day speculation and said the compulsory delivery norm and option of futures market will not attract the speculators.