.jpg)
National Spot Exchange Limited (NSEL) and Gujarat Agro Industries Corporation Ltd. (GAIC), a Gujarat Government enterprise, today signed a Memorandum of Understanding (MoU), to create a strategic alliance for development of agri business and other allied services in the State of Gujarat.
National Spot Exchange Limited is promoted by Financial Technologies (FTIL) & NAFED and GAIC is Government of Gujarat enterprise. GAIC acts as a facilitator, catalyst and Nodal agency for Government of Gujarat, Government of India, Directorate of Agriculture, Ministry of Food Processing Industries, APEDA, etc. The main objective of GAIC is to promote agricultural activities and development of agro based industries in the State of Gujarat. It has a strong rural marketing network for distribution of pesticides, fertilizers, implements etc.
Commenting on this significant development, Mr. Anjani Sinha, MD & CEO, National Spot Exchange said, “NSEL’s association with GAIC goes beyond merely providing services relating to trading of agricultural commodities. It aids Gujarat Agro’s widespread network of 1200 centres that provides agricultural input services. This association, by creating a vibrant electronic spot market for agricultural commodities in Gujarat, opens up a unique opportunity for farmers in Gujarat to trade on the platform and enjoy benefits.”
Gujarat Agro will obtain membership of NSEL that will entail all its agro service centres and business centres to have access to NSEL terminal to buy or sell various agri commodities. Besides, Gujarat Agro and NSEL will also jointly organize awareness programs in various parts of Gujarat to educate the farmers on the benefits of spot trading.
Mr. S. C. Srivastav, IFS, Managing Director, Gujarat Agro said, “Gujarat Agro was set up with the objective of promoting agri business, increase in farmers’ price realization as also to accelerate growth of demand driven agriculture. This association will enable our centres across the State to use the trading platform of NSEL for working as a conduit between upcountry buyers and the local farmers, so that farmers can get a better price for their produce.”
Both the organization will work for the development of agricultural markets in Gujarat by using the mutual domain expertise and will explore the possibility of launching spot trading in the agricultural commodities as mutually decided. NSEL will act as interface between buyer & seller and ensure successful clearing, settlement, delivery and storage mechanism.
This small initiative with big potential for future growth indeed that deserves emulation on a bigger scale. Those who are calling for a need for a second green revolution can take heart from this development with long-term impact on agricultural growth.
