Pilot electronic trading in mangoes conducted in June 2007 at the Regulated Marketing Committee delivery center at Pochampalli, Krishnagiri District, Tamil Nadu.
- Initial launch planned to cover apple, mango, banana, potato, onion and tomato.
- Actual traded prices will be displayed on the trading screen in markets across the country.
- Farmers on bringing their produce will grade and sort them at the delivery center as per the quality standards specified by SNX.
- SNX will undertake an inspection and issue a quality certificate to the farmers. SNX will also facilitate warehousing and logistics facility. Products that meet the required norms including size, quality, colour and shape alone will be allowed for trading.
- The delivery needs to be completed before the next day of trading. A penalty of 10 per cent would be imposed on farmers if they failed to deliver the produce after trading.
- Delivery of products to the buyer would take place once the payment is received. A penalty of 10 per cent would also be imposed on buyers if they failed to pay and lift the commodity after trading.
- SNX will pay the farmers after they receive the payment from the buyer and process it.
Benefits to farmers:
- Farmers can know the prices being realized across the country. They will have the option to conclude price for their produce for sale prior to harvest.
- Fewer middle men and lower transaction cost.
- Payments are guaranteed by SNX.
- Quality certification protocol administered by SNX.
- Improvement in post harvest practices for better shelf life and quality of grading, packing and overall delivery, match with rapidly rising expectations of quality by consumers.
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