National APMC
National Agriculture Produce Marketing Company of India (National APMC) is looking at covering maximum number of states with or without having an APMC act, so as to create a large chain of buyers and sellers of agro-produces throughout the country.
National APMC is looking ahead to integrate all major APMCs across the country, for which initially talks are on with seven state governments where the APMC act is in force, while states like Bihar and Kerala too are on radar of the exchange as they don’t have the state APMC act.
“We are considering to launch spot exchange operations in states including Rajasthan, Maharashtra, Karnataka, Uttar Pradesh, West Bengal, Madhya Pradesh and Andhra Pradesh. However, we are waiting for the approval from the respective state governments. Meanwhile, in states like Bihar and Kerala, where the state APMC act is not in force, we can start operations faster,” said J Cheenath, chief executive officer, National APMC.
Speaking to Commodity Online, Cheenath mentioned that initially the exchange would focus on integrating all APMCs in Gujarat and create membership base across the country. “We are planning to start-off our operations in April with about 250 members, which we expect to touch 2000 in next six months. Ideally, there would be an addition of 2000 members every six months over some period,” said Cheenath, who recently took over the charge of the exchange as a CEO. National APMC is co-promoted by Gujarat Niyantrit Bazaar Sangh (GNBS) and Neptune Overseas Ltd (NOL).
The exchange has received permission to offer spot trading in three commodities in Gujarat that includes cotton, jeera and castor seed. “These are the three commodities, where Gujarat holds the key position in production. So, we can have better pricing mechanism in place for our sellers as well as buyers. We have sought the state government’s approval to add a few more commodities to our kitty. Once achieved significant variety of commodities, we would be able to cater to the requirements of our members situated in different parts of India,” Cheenath said adding that a seller from Gujarat would be able to sell his produces to the members of the exchange located anywhere in India, which would give sellers the opportunity to get best price for the goods.
In Gujarat, the exchange is mulling to start spot trading in other eight commodities including mustard, groundnut, sesame, wheat, paddy, bajra, potato and onion.
Commenting on the membership base and area of operations in the commodities like pepper, castor, rubber etc, where NMCE already has a presence, Cheenath explained that it would be a benefit to both the exchanges, as NMCE deals primarily in the futures trades, while National APMC would essentially operate in spot trades.
“This will be a win-win situation for both of us. Additionally, this would provide better opportunity to the hedgers to gain maximum profit as he can buy goods in spot on National APMC and sell them in futures on NMCE, or vice-versa. All existing members of NMCE, who are interested in spot trading, would be offered membership of National APMC,” he added.
National APMC has fixed initial membership fees as low as Rs.5000 per member, which is much less than that offered by other exchanges. “We are focusing in providing excellent service to the buyer and top quality goods to the buyers. In order to ensure larger participation, we have kept the prices as low as possible,” Cheenath said.
National Agriculture Produce Marketing Company of India (National APMC) is looking at covering maximum number of states with or without having an APMC act, so as to create a large chain of buyers and sellers of agro-produces throughout the country.
National APMC is looking ahead to integrate all major APMCs across the country, for which initially talks are on with seven state governments where the APMC act is in force, while states like Bihar and Kerala too are on radar of the exchange as they don’t have the state APMC act.
“We are considering to launch spot exchange operations in states including Rajasthan, Maharashtra, Karnataka, Uttar Pradesh, West Bengal, Madhya Pradesh and Andhra Pradesh. However, we are waiting for the approval from the respective state governments. Meanwhile, in states like Bihar and Kerala, where the state APMC act is not in force, we can start operations faster,” said J Cheenath, chief executive officer, National APMC.
Speaking to Commodity Online, Cheenath mentioned that initially the exchange would focus on integrating all APMCs in Gujarat and create membership base across the country. “We are planning to start-off our operations in April with about 250 members, which we expect to touch 2000 in next six months. Ideally, there would be an addition of 2000 members every six months over some period,” said Cheenath, who recently took over the charge of the exchange as a CEO. National APMC is co-promoted by Gujarat Niyantrit Bazaar Sangh (GNBS) and Neptune Overseas Ltd (NOL).
The exchange has received permission to offer spot trading in three commodities in Gujarat that includes cotton, jeera and castor seed. “These are the three commodities, where Gujarat holds the key position in production. So, we can have better pricing mechanism in place for our sellers as well as buyers. We have sought the state government’s approval to add a few more commodities to our kitty. Once achieved significant variety of commodities, we would be able to cater to the requirements of our members situated in different parts of India,” Cheenath said adding that a seller from Gujarat would be able to sell his produces to the members of the exchange located anywhere in India, which would give sellers the opportunity to get best price for the goods.
In Gujarat, the exchange is mulling to start spot trading in other eight commodities including mustard, groundnut, sesame, wheat, paddy, bajra, potato and onion.
Commenting on the membership base and area of operations in the commodities like pepper, castor, rubber etc, where NMCE already has a presence, Cheenath explained that it would be a benefit to both the exchanges, as NMCE deals primarily in the futures trades, while National APMC would essentially operate in spot trades.
“This will be a win-win situation for both of us. Additionally, this would provide better opportunity to the hedgers to gain maximum profit as he can buy goods in spot on National APMC and sell them in futures on NMCE, or vice-versa. All existing members of NMCE, who are interested in spot trading, would be offered membership of National APMC,” he added.
National APMC has fixed initial membership fees as low as Rs.5000 per member, which is much less than that offered by other exchanges. “We are focusing in providing excellent service to the buyer and top quality goods to the buyers. In order to ensure larger participation, we have kept the prices as low as possible,” Cheenath said.
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