Reported by: banking|Updated: November 15, 2020
In 3 years, NeML has registered over 4 million farmers and transacted more than Rs160 billion.
The erstwhile NCDEX Spot Exchange is now NCDEX eMarkets (NeML) and is the only full-service e-market company in the country. NeML’s Chief Sales Officer Shailesh Chitre says the company recently ran a successful campaign focusing on Farmer Producer Organizations (FPOs) to familiarize the farming community with the e-market platform. “During this campaign period, our FPO membership increased by 4 times. At present, we have more than 250 FPOs members on our various e-Market platforms spread over 14 states. Maharashtra accounts for the maximum number of FPO members, followed by Karnataka and Tamil Nadu. During the April-July 2020 period, the top participation came from the West (35%), Maharashtra (30%) and Bihar (20%),” says he.
By using the platform, the FPOs could realise prices higher than the prevailing market prices for their products and when they sold more than 650 MT of agricultural commodities. Shailesh Chitre mentions that during the April-July 2020 period, this basket consisted of 11 agri-commodities covering cereals, pulses, fruits and vegetables of which 8 fetched 1% to 3% higher than market prices in cases of cereals and pulses and 10% to 30% for fruits. For the buyers too, there is guaranteed supply of required volumes as NeML platforms are a one-stop shop for them saving them the inconvenience of buying fragmented lots for which they are more than willing to pay a premium to the marketplace, adds he.
There is a unique initiative on the NeML platform – EFresh, which integrates the e-spot markets with the nationwide cold storage network of Schedulers Logistics to provide the best produce at customers’ doorstep. EFresh attracts wholesale and retail buyers as they are assured of access to national markets, tracking of order, order consolidation mechanism, transparent price discovery mechanism and best quality delivered fresh at the doorstep.
Quality Data Share
FPO members prefer using NeML eMarket platforms as they are assured of no conflict of interest as it is a purely e-market company with no vested interests in trading. Shailesh Chitre says in addition, NeML assures the best transparent price discovery opportunities given its vast and unmatched network of more than 12,000 buyers spread across various states around the country. “This enviable advantage places NeML uniquely in a position to get private buyers’ seasonal volume and quality requirement data and sharing it with prospective FPOs for procurement initiation. Most importantly, FPOs are assured of timely payments and protected in case of a default by the buyer,” he says.
Banks’ Credit Assessment
As the leading e-Market operator in the country, NeML is committed to create and support the entire ecosystem enabling its e-Market platforms like warehouses, assaying services, logistics providers and financial institutions. It has tied up with more than 14 banks. “These include private and PSU banks and these banks are comfortable with providing financial needs of the buyer and seller participants with a transaction track record with NeML. A significant part of their due-diligence process is taken care of by the NeML’s robust onboarding process followed for its members. While NeML facilitates the process of making easy credit available to its members, the final decision is taken by the member banks in line with their credit assessment policies,” says Shailesh Chitre.
Over the past 3 years, NeML has been engaged with NAFED and some state governments for their MSP procurements. The NeML designed eSamridhi system has been implemented by NAFED as the main system for the entire MSP procurement for pulses and oil seeds. Shailesh Chitre says eSamridhi has been implemented in the states of Maharashtra, Andhra Pradesh, Karnataka, Gujarat, Rajasthan, Madhya Pradesh, West Bengal, Assam and Uttar Pradesh. It is designed to capture the entire workflow of the procurement process right from farmer registration, identity registration, land records, lot details, quality details, warehouse receipt and farmer payments. In the past 3 years, NeML has registered over 4 million farmers and payments amount more than Rs160 billion have been credited into the farmer accounts using DBT, he adds.
ReMS (Rashtriya eMarket Services) is the first joint venture company in the country, which has been set up to implement the agricultural marketing policy with the state government of Karnataka and NeML having shareholding of 50% each. ReMS is mandated to work closely with market committees in the state and provide a versatile and powerful unified market platform for all market operations. The year 1917-18 has been an important milestone for the organization, as its mobile app was launched in that year. With 162 e-markets, more than 60 commodities are traded here, with trading volume running in billions of rupees.