MCX stuck in launching national spot exchange

KOLKATA: Multi Commodity Exchange (MCX) has not been able to launch its electronic spot exchange in the country due to delay in amendment of the Agricultural Produce Marketing Committee Act (APMC Act) in various states.

MCX Director Anjani Sinha today said the company had envisaged setting up a national spot exchange, which would help in fixing fair prices for farmers' produce.

Sinha, however, regretted that due to the APMC Act, the exchange was unable to move forward as the sub-brokers or brokers who have to get access to farmers through APMC license holders.

He said if the national spot exchange saw the light of the day, then the influence of the local traders would be reduced to a large extent and farmers would get better prices.

Sinha said the situation in West Bengal was no different than other states, except Gujarat where the government had amended it to facilitate such spot trading.

The number of intermediaries would also be eliminated to a large extent, the MCX official said.