The NCDEX Spot Exchange today said it has signed an agreement with Origo Commodities India to provide a platform for the farmers to help them place their produce directly on the exchange through the Primary Agriculture Cooperative Societies (PACS).
This initiative would help change the dynamics of trade and supply chain of agricultural commodities with respect to storage, commodity financing, trade facilitation and other value added services that could make farmers a key point in the entire value chain of agri-commodities, NCDEX Spot Exchange (NSPOT) said in a release issued here.
Building the Primary Agriculture Cooperative Societies (PACS) is part of NABARD’s initiative to create commodities multi services centres in Andhra Pradesh to enable the farmers avoid distress sale.
Around 60 PACS would be registered under Warehousing Development and Regulatory Authority (WDRA) in the first phase on NCDEX Spot as a participant and about 10,000 farmers will have access to the exchange platform.
Origo Commodities will manage all the warehouses under this project and PACS warehouses will be the integration centres for pre-harvest and post-harvest services.
In this process, NCDEX spot exchange will support the farmers by helping them reach the buyers or processors directly, which will result in better price realisation and also help in lowering the supply chain costs in the agricultural commodity gamut, it added.
Farmers can see the bids for their produce online at the PACS centres before deciding the selling price of their produce.
NCDEX Spot platform will also enable the PACS in creating price transparency for farmers.
Going forward NCDEX plans to encourage the farmers to participate on the future exchange, which would yield enhanced benefits to farmers.