NCDEX Spot Exchange Ltd (NSPOT) is taking an initiative to modernise mandis (APMC) across the country as a key marketing infrastructure project with the prime objective to provide optimum realisation to farmers? produce at the agricultural produce market committee (APMC) and to increase the producers? arrivals in the markets.
Mandi modernisation project is comprehensive modernisation
of operations and integration of mandis.
?We have initiated the process to modernise the various mandis in the country with the initial pilot project costing Rs 100 crore and will cover 10 APMC mandis in the select states. The exchange has applied to the government to be recognised as the nodal agency,? Rajesh Sinha,head, Spot Exchange, NSPOT said.
?It is the next logical step for the state governments to make existing AMPC markets more efficient and transparent enabling better realisations to various stakeholders in the mandi,? he said.
The exchange is in talks with five major states that includes Karnataka, Gujarat, Maharashtra, Madhya Predesh and Rajasthan for pilot project. The project would be operational on BOT basis with public private participation (PPP) model, he said.
NSPOT would operate the process within 5 to 10 years and then handover it to the mandi. NSPOT would work on continuous improvement of the operations and aims to integrate these markets to the online electronic markets before handing over he added.
He also said that value chain in agri-commodities would become more efficient and producers would get better price. Traders in a mandi get an unbiased trading platform helping them sell to more buyers.
It can be noted that there is value chain loss of 30-40% from producer to consumer. The savings would more than pay for the infrastructure. Modern infrastructure would be better and more efficient than existing trade ecosystem around APMCs (mandis). Terminal markets would give more money to the producers than existing trade participants.