NMCE to rope in APMCs for commodity spot exchange

The proposed exchange to be known as National APMC

National Multi-Commodity Exchange of India (NMCE), one of the leading commexes in country, has initiated a dialogue with Agriculture Produce Marketing Committees (AMPCs) seeking their support to launch a commodity spot exchange. The proposed exchange would be known as National APMC.

"We are closely working with Gujarat Bazaar Niyantrit Sangh, an apex body of all the existing AMPCs in state, for bringing them in to start the spot exchange. Recently, we held a meeting with the representatives of various AMPCs to seek their support in the project,” said Anil Mishra, chief executive officer (CEO), NMCE. The exchange will gradually try to encourage other AMPCs to be a part of the project.

NMCE intends to integrate with all the AMPCs for rolling out commodity exchange. "We want to use their domain expertise and experience. NMCE may also utilise their infrastructure, if required", he added. Gujarat has around 194 APMCs operational in the state. Many of these AMPCs are also in the process of availing government funding to upgrade their infrastructure to compete with private players.

The proposal to start a spot exchange in collaboration with AMPCs has already receieved approval from Gujarat's agriculture secretary and the same is pending clearance from agriculture minister of the state.

NMCE plans to start the proposed spot exchange in next couple of months if it gets approval. "Initially, we will launch commodities, which are Gujarat-based commodities such as castor, isabgul, guargum etc.," Mishra said.

Apart from Gujarat, NMCE further plans to replicate the same model in other parts of the country. The exchange has in-principle approval launching similar spot exchange in Rajasthan, which will be the next state after Gujarat to start its spot exchange. However, NMCE has not worked out investment for the project.