NBHC awaits procurement nod

National Bulk Handling Corporation Ltd (NBHC), an end-to-end solution provider in all commodities-related collateral management, procurement and gradation, is awaiting the Food Corporation of India's (FCI) nod to begin its procurement activities for the current rabi season.

Last year, the delivery arm of the Multi Commodity Exchange of India (MCX) had procured about 13,000 tonne of wheat for FCI despite receiving permission towards the end of the season. NBHC has also geared up to procure other commodities like paddy, jowar, bajra and maize for FCI as it has been doing for private players since its inception one year before.

Although, the FCI has already started wheat procurement in Madhya Pradesh, it has not engaged any private companies to procure commodities on its behalf. As a matter of practice, the largest foodgrains procurement networking agency in the world, engages private agencies to procure foodgrains in regions where it has minimal presence.

The foodgrains warehousing company clears the nod generally in the beginning of the season with specifications and guidelines, strictly to be followed. It's almost impossible for FCI to reach every foodgrains hub of the country and to complete procurement within the specified cost limit of Rs 90 per tonne.

"Procurement through us never goes beyond Rs 90 per tonne with satisfactory supply commitment from farmers for the next season. This helps to build strong linkages between farmers and the government with the insurance of providing a minimum support price (MSP)," said Anil Choudhary, MD, NBHC.