Ex-servicemen join futures markets
The pulsating commodity futures markets has caught the fancy of ex-army personnel in Maharashtra.
By Deepa Krishnan, TNN |
MUMBAI: The pulsating commodity futures markets has caught the fancy of ex-army personnel in Maharashtra. The Maharashtra Ex-Servicemen Corporation (MESCO) is planning to use the futures trading platform to help its members, a majority of whom are from the farming community, get better prices for their produce.
The corporation has over two lakh members. Almost 55,000 of these members live in Satara, Sangli, Kolhapur, Solapur and Ahmednagar and the rest in villages. The corporation is looking to tie up with the National Commodities and Derivatives Exchange of India (NCDEX).
Through the partnership, MESCO will form close user groups of banks, warehouses, aggregators, insurance companies and farmers. The corporation will first create awareness about the commodity markets, through initial pilot projects in Satara, Sangli and Solapur, and will take membership on the NCDEX, to trade on the exchange platform, said Bhagatsinh Deshmukh, director, department of Sainik Welfare, Maharashtra, and the MD of MESCO.
“We have conducted a survey in these districts, and are also looking at setting up grading, assaying, warehousing and transportation facilities,” he said.
The corporation gets an annual grant of Rs 20 crore to fund families of those who fought in World War II, and Rs 5 crore for families of war casualties from the government. Of this, the corporation has saved Rs 2 crore last year. The government has approved a proposal to use the funds as seed capital to kick off four projects and the futures platform would be one, said Mr Deshmukh.
Most of the ex-servicemen have small land holdings and participating in the futures market would help them get better prices for their produce. Dependence on money lenders and commission agents to get access to the spot markets of agricultural commodities result in 8-15% loss of the gross value of the produce for these farmers.
As banks would be able to extend ready credit to ex-servicemen-cum-farmers against their produce in MESCO warehouses, their dependence on commission agents and money lenders would reduce.
The corporation has over two lakh members. Almost 55,000 of these members live in Satara, Sangli, Kolhapur, Solapur and Ahmednagar and the rest in villages. The corporation is looking to tie up with the National Commodities and Derivatives Exchange of India (NCDEX).
Through the partnership, MESCO will form close user groups of banks, warehouses, aggregators, insurance companies and farmers. The corporation will first create awareness about the commodity markets, through initial pilot projects in Satara, Sangli and Solapur, and will take membership on the NCDEX, to trade on the exchange platform, said Bhagatsinh Deshmukh, director, department of Sainik Welfare, Maharashtra, and the MD of MESCO.
“We have conducted a survey in these districts, and are also looking at setting up grading, assaying, warehousing and transportation facilities,” he said.
The corporation gets an annual grant of Rs 20 crore to fund families of those who fought in World War II, and Rs 5 crore for families of war casualties from the government. Of this, the corporation has saved Rs 2 crore last year. The government has approved a proposal to use the funds as seed capital to kick off four projects and the futures platform would be one, said Mr Deshmukh.
Most of the ex-servicemen have small land holdings and participating in the futures market would help them get better prices for their produce. Dependence on money lenders and commission agents to get access to the spot markets of agricultural commodities result in 8-15% loss of the gross value of the produce for these farmers.
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As banks would be able to extend ready credit to ex-servicemen-cum-farmers against their produce in MESCO warehouses, their dependence on commission agents and money lenders would reduce.
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