Karnataka sets up SPV with NCDEX for national e-trading in farm goods

Karnataka has taken a lead in implementing trading of agricultural produce on national e-platform by establishing a special purpose vehicle (SPV), Rashtriya e-Market Services Pvt Ltd (ReMS), set up as a joint venture company between the government of Karnataka and NCDEX Spot Exchange Ltd.

Union agriculture minister Radha Mohan Singh will be leading a delegation of ministers in-charge of agriculture marketing of states and UTs to Hubli, Karnataka, on 9 and 10 July 2015 to witness firsthand the functioning of e-marketing platforms and to familiarise the states and union territories towards this initiative.

The study visit will include presentation on agricultural market reforms in Karnataka and familiarisation with Unified Marketing Platform (UMP) and its modules.

A visit to APMCs at Hubli and Sirsi is also scheduled to interact with market participants and observe the operation of UMP. The visit is expected to promote a better understanding of the way forward for implementation of the National Agriculture Market, a government release said.

The Cabinet Committee on Economic Affairs had, earlier this month, approved the central sector scheme for promotion on National Agriculture Market through Agritech Infrastructure Fund with a budget allocation of Rs200 crore. The scheme entails setting up of a common e platform and its deployment in 585 selected wholesale regulated markets across the country.

Small Farmers' Agribusiness Consortium (SFAC) has been identified as the lead implementing agency for the national market. The central government will provide software free of costs to the states and also Rs30 lakh for hardware per mandi for setting up related equipment/infrastructure.