WB braces for online spot trading

KOLKATA: NCDEX has set the ball rolling to introduce online spot trading in agri commodities in West Bengal. The commodity exchange has placed a proposal to the state agricultural marketing department in this regard and sought the latter’s approval on the proposal.

The commodity bourse has said in its proposal it intends to roll out spot trading in agri commodities on the electronic platform in the state, according to the legal provisions under the West Bengal Agriculture Produce Marketing (Regulation) Act, 1972 (WBAPM), which governs agri commodity marketing in the state.

Sources in NCDEX said since the state department has not rejected the proposal instantly, it expects a positive response from the government in this regard. When contacted, Asoke Santra, CEO of the West Bengal State Agri Marketing Board (WBSAMB), said if electronic spot trading does not clash with physical trading in agri commodities, giving permission to the former one may be considered.

He made it clear that under no circumstances will a wholesale market complex by any private operator be allowed to come up within a 10 km radius of those markets which are being approved by the department. The final go-ahead to the proposal could be given only after the passage of amendments in the WBAPM Act, he added.

In West Bengal, the Agriculture Produce Marketing Act (APMC) according to the central guidelines is not in operation. Instead, agri marketing in the state is controlled by the WBAPM Act.

The state government is actively considering to include some new provisions in the act, like those relating to setting up of private market yards, special commodity market yards and consumer-farmer market (‘apni mandi’).