BSE Launches E-Agricultural Spot Market Platform
A bronze bull statue stands at the entrance to the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Prashanth Vishwanathan /Bloomberg)

BSE Launches E-Agricultural Spot Market Platform

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The Bombay Stock Exchange on Friday said it has launched an electronic spot platform for agricultural commodities.

The platform-- BSE e-Agricultural Markets Ltd. --- will function as a national level, institutionalized, electronic, transparent commodity spot trading platform in line with the prime minister's vision to create a "single market", the exchange said in a statement.

In addition, the platform would facilitate spot agricultural commodities transactions across value chain consisting of producers, intermediaries, ancillary services and consumers.

The platform will commence beta operations effective from Dec. 11, 2020.

BEAM would offer customised solutions to farmers, traders, and stakeholders to facilitate the purchase and sale of various agri commodities.

According to the exchange, the platform will ensure reduced cost of intermediation, improved procurement efficiency, enhanced producers' realisation and more competitive consumer prices. It will also help eliminate bottlenecks associated with procurement and trading, it said.

Also read: Farmers Reject Government Proposal On Agri Laws, To Intensify Agitation With Nationwide Protest On Dec. 14

"Access to regulated and transparent marketplace, direct access to multiple buyers, receipt of cash directly into the account of beneficiary and reduction in intermediate costs are some of the major benefits of our platform," said Ashishkumar Chauhan, Managing Director and Chief Executive Officer of BSE.

With the help of BEAM, farmers in one state would be able to reach out to markets in other states and auction their produce.

This will not only help farmers and farmer collectives discover best prices for their produce based on the quality, but also offers to build capacity to help intermediaries, processors and exporters procure from states, BSE said.

Also read: The Plan The Centre Should Put To Punjab And Haryana’s Farmers

"The country needs a dedicated e-market platform for agricultural spot markets, that have no conflict of interest to further the cause of producers. BEAM is the only company in the country fulfilling this requirement," said Rajesh Sinha, CEO of BEAM.

According to him, the company is poised to play a pivotal role in creating a highly efficient spot market for agricultural produce in the country.

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