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BSE Launches E-Agricultural Spot Market Platform

IBEF:  December 14, 2020

On Friday, the leading BSE stock exchange announced the launch of an electronic spot platform for agricultural products.

The exchange said in a statement, the BSE e-Agricultural Markets Ltd (BEAM) platform will act as an institutionalised, electronic, open, national level commodity spot trading platform in line with the vision of the prime minister to establish a single market.

The platform will also promote spot-and-spot transactions of agricultural commodities through the value chain, consisting of manufacturers, intermediaries, ancillary services and consumers. The platform will launch beta operations effective from 11 December 2020 onwards.

BEAM will provide producers, merchants, and stakeholders with tailored solutions to promote the risk-free and hassle-free purchasing and selling of different agricultural commodities.

According to the exchange, the platform would ensure reduced intermediation costs, increased quality of procurement, enhanced realisation of suppliers and more efficient market prices. It would also help reduce procurement and trading-related bottlenecks.

Mr. Ashish Kumar Chauhan, MD and CEO of BSE said, “Some of the key advantages of our platform are access to a controlled and open marketplace, direct access to multiple customers, receipt of cash directly into the beneficiary's account and a reduction in intermediate costs.”

Farmers in one state will be able to access markets in other states with the support of BEAM and auction their produce.

BSE stated that this will not only allow farmers and farmer collectives to find the best quality-based prices for their goods, but will also provide capacity building to assist intermediaries, processors and exporters to purchase from states. “For agricultural spot markets that have no potential conflicts of interest to advance the cause of farmers, the country requires a dedicated e-market platform. BEAM is the only company fulfilling this requirement in the world,” said Mr. Rajesh Sinha, BEAM's CEO. According to him in developing a strong efficient spot market for agricultural products in the region, the company is poised to make a significant contribution.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.