NCDEX mulls spot exchanges for coffee in Karnataka, Kerala
National Commodity & Derivatives Exchange plans to launch electronic spot exchanges for coffee in Karnataka and Kerala.
By PTI |
MUMBAI: National Commodity & Derivatives Exchange Ltd (NCDEX) has firmed up plans to launch electronic spot exchanges for coffee in Karnataka and Kerala to establish backward linkage in the coffee trading space.
Barring coffee, all other soft commodities require amendments to state statutes, which currently recognise only mandis such as regulated physical markets for agriculture produce comprising traders, commission agents, brokers, processors, weigh-men, measurers, surveyors and warehousemen licensed to use any place in the market yard for marketing their agricultural produce, on agricultural marketing for launching spot exchanges, a release said today.
Coffee is not governed by any state statute on agricultural marketing.
Coffee growers can realise better price for their produce as farmers stand to gain much larger share of the final price the consumer pays due to rationalisation of the agriculture marketing value chain, as they will be in a position to compare coffee prices prevailing in the electronic spot and futures exchanges on two different trading screens and take decisions accordingly, the release said.
The spot exchange will offer two windows -- auction for coffee that is not of the standard grade and standard-coffee grade that meets the futures contract specifications -- for buyers and sellers.
Delivery centres for coffee trades settled through the proposed electronic spot exchange as well as the electronic futures exchange would be the same, it added.
Barring coffee, all other soft commodities require amendments to state statutes, which currently recognise only mandis such as regulated physical markets for agriculture produce comprising traders, commission agents, brokers, processors, weigh-men, measurers, surveyors and warehousemen licensed to use any place in the market yard for marketing their agricultural produce, on agricultural marketing for launching spot exchanges, a release said today.
Coffee is not governed by any state statute on agricultural marketing.
Coffee growers can realise better price for their produce as farmers stand to gain much larger share of the final price the consumer pays due to rationalisation of the agriculture marketing value chain, as they will be in a position to compare coffee prices prevailing in the electronic spot and futures exchanges on two different trading screens and take decisions accordingly, the release said.
The spot exchange will offer two windows -- auction for coffee that is not of the standard grade and standard-coffee grade that meets the futures contract specifications -- for buyers and sellers.
Delivery centres for coffee trades settled through the proposed electronic spot exchange as well as the electronic futures exchange would be the same, it added.
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