BSE launches electronic spot platform for agricultural commodities

The BSE on December 11 announced the launch of an electronic spot platform for agricultural commodities—BSE E-Agricultural Markets Ltd. (BEAM)—through its subsidiary BSE Investments Ltd.

"This platform will function as a national, institutionalised, 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.

The platform facilitates spot agricultural commodities transactions across the value chain, consisting of producers, intermediaries, ancillary services and consumers. The platform will commence beta operations effective December 11, the exchange said.

BEAM leveraged state-of-the-art technology to offer customised solutions to farmers, traders and stakeholders to facilitate risk-free and hassle-free purchase and sale of various agricultural commodities, it said.

With BEAM, farmers in one state will 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 plans to leverage its nation-wide distribution network and state-of-the-art technology to provide a world class framework for agriculture commodities to the benefit of the farmers and the Indian economy," BSE MD & CEO Ashishkumar Chauhan said.

The platform would will ensure reduced cost of intermediation, improved procurement efficiency, enhanced producers’ realization and more competitive consumer prices. The platform will also help eliminate bottlenecks associated with procurement and trading," said BSE.

Speaking on the occasion, Ashishkumar Chauhan, MD & CEO of BSE, said: "BSE plans to leverage its nation-wide distribution network and state-of-the-art technology to provide a world class framework for agriculture commodities to the benefit of the farmers and the Indian economy."

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

The company would play a pivotal role in creating a highly efficient spot market for agricultural produce by working closely with the value chain participants, Sinha said.