National Spot Exchange short listed to sell wheat under open market
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14 Dec 2009
Food Corporation of India (FCI) has short listed NCDEX Spot
Exchange (NSPOT) and Financial Technologies-promoted National Spot Exchange to
sell wheat under its Open Market Sale Scheme (OMSS). While NSPOT will sell wheat
in Karnataka and Haryana, NSEL will sell it on behalf of FCI in Delhi.
The transactions will be conducted by electronic auction under a pilot project
of the government to sell wheat under OMSS. This project covers the four states
of Delhi, Haryana, Andhra Pradesh and Karnataka. |
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NCDEX Spot Exchange’s head Rajesh Sinha confirmed the development, saying his
company was ready with an electronic auction platform and would launch
operations within a fortnight in the two states. |
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On the structure of transaction charges, Mr Sinha said NSPOT will provide
this platform at zero-cost to FCI while for buyers the charges are expected
to be competitive. NSEL plans to charge Rs 100 per one lakh rupees worth of
transactions.
NSEL is likely to start electronic auction from December 16. Anjani Sinha,
managing director of the spot exchange, said that FCI will decide the price
and quantity for every state. He said, “Based on the success of Delhi we
might launch this auction in Hyderabad or Karnataka.”
FCI plans to sell 1.5 million tonne wheat under OMSS to bulk users like the
roller floor millers. Of this, FCI has planned electronic auction for
500,000 tones. Mr. Sinha said, "If this electronic auction is successful
FCI may bring in remaining quantity earmarked under OMSS.”
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