Hafed in talks for two spot bourses in state

Written by Preeti Parashar | Chandigarh | Updated: Mar 8 2011, 07:31am hrs
Haryana State Cooperative Supply and Marketing Federation (Hafed) has firmed up plans to set up two spot exchanges in Rewari and Narnaul. The federation has also approached two national-level commodity stock exchangesMCX and NCDEXfor tie-ups to give the shape to these exchanges. The spot exchanges, for trading of mustard seed, are expected to come up at these two places by mid April, Anil Malik, managing director Hafed told FE. He further added, These exchanges will be established at our accredited godowns and stock exchange officials will be deployed there. The farmers will have an option of comparing the mandi prices with the exchange prices and earn better revenues for the agricultural produce.

Earlier the state cooperative federation had run a spot exchange of NCDEX on trial basis in Rewari mandi and 800 tonne of commodities were traded through it. Malik also said that in case the farmers do not find the prices appropriate, Hafed will procure the crop. Though Hafed will act as a facilitator in providing the services of the exchanges to the farmers, we will ensure the agricultural produce is sold, said Malik.

The federation also has plans to establish spot exchanges of the Ace Derivatives and Commodity Exchange (ACE) in state mandis over a period of time. Ace Derivatives and Commodity Exchange will be the fifth national-level multi commodity exchange promoted and anchored by the Kotak Mahindra Bank. Hafed has taken 15% equity in this venture. The Kotak Group owns 51%. In addition to castorseed, the exchange commenced trading in four products in agricultural sector viz soyabean, soya oil, rapeseed and gram.

Malik further informed that though ACE has not initiated the process of setting up its spot exchanges yet but these are on the cards. He said, The trade of the exchange, set up in October, is picking up day by day. Trading in just five commodities at present, it has a trading volume of around R400 crore per day. The exchange is planning to launch trading of metal soon. After that the volumes are expected to shoot up. Where trading on ACE is concerned it is still under consideration whether being an owner in the exchange Hafed can trade on it or not.