Betting big on online trading, for the first time to start with, NDDB will soon be facilitating online trading for mangoes from Chitoor district in Andhra Pradesh. Other traders include the Multi Commodity Exchange (MCX) and Spot Trading who are in a queue weighing options on the bargaining power of the farmers.
Facilitating the trading aspects, the Consortium of Indian Farmers Association (Cifa), which works with the Confederation of Indian Industry (CII), has helped in forming about eight mutually-aided cooperative societies in Chitoor. About 1,000 farmers with over 10,000 acre have enrolled in these registered societies.
Explaining the concept to FE, P Chengal Reddy, secretary general, Cifa, said, For the first time in the country, online trading for mangoes, is becoming a reality. This has helped in the bargaining power of the farmers who were hitherto falling to the middlemens trap. The farmers expect a 25-30% increase in the selling prices through the online trading mechanism.
Moreover, there are over 30-40 processing units which has beckoned many corporates like Coca-Cola for pulp procurement. While NDDB is initially acting as a facilitator, it is also in the process of entering into online trading for mangoes, thus becoming a trader apart from MCX and spot trading.
According to Reddy, plans are afoot to expand the online trading mechanism in 12 more districts.