NCDEX has signed a deal with Origo Commodities India to enable farmers to offer their produce on the exchange through Primary Agriculture Cooperative Societies.
The move is expected to effect a big change in trade and supply of agricultural commodities. This could transform farmers into an important player in the entire value chain of agri-commodities, says the circular of the exchange.
NABARD has lately been of the view that PACs should function as commodities multi services centres in Andhra Pradesh to help farmers avoid distress sale of their produce.
In the beginning, on NCDEX Spot as participants about 10,000 farmers are likely to benefit from the exchange platform. Origo Commodities will manage all the warehouses.
Sources say the NCDEX spot exchange will support the farmers in getting in contact with the buyers or processors directly. This will get them better price and reduce the supply chain costs, they add.