stored produce and improved knowledge on price risk management allows farmers and farmers’ organizations to obtain better price realization for their produce.
4. In addition, trading through Electronic Commodity Exchange provides an alternative marketing channel, which increases potential for better price realization. With the amendment of the APMC Act in Maharashtra, establishment of Electronic Spot Markets that allow online trading trough electronic commodity exchanges (outside APMCs and across state boundaries) have become possible. The National Commodity and Derivative Exchange Limited (NCDEX), the Multi Commodity Exchange Limited (MCX), and National Spot Exchange Limited (NSEL), three national commodities exchanges, are in process of setting up systems that make this feasible in Maharashtra. Hence, the project proposes:
i. To build capacity of farmers on price risk management for Cereals and Pulses PAs, and the associated PGs,
ii. To support a pilot activity that will provide access to trading through Commodity Exchanges for farmers, and,
iii. In parallel, work in partnership with the MSWC to support the emergence of this new trading conduit through capacity building, upgrading of Godowns and facilitating access to trading screens.
5. MSWC has more than 800 warehouses with around 12 lakh tonnes of storage capacity. In agricultural producing areas utilisation of storage capacity of godowns is more than 75%. Overall utilisation of MSWC’s warehouse capacity is 89%. Finance against warehouse receipts of MSWC provided by banks was Rs. 184.59 crore. The negotiable receipt credit against warehouse receipts of MSWC is increasing every year. Initially 40 godowns of MSWC have been identified for warehouse receipt scheme programme. MSWC has already entered in to agreement with NCDEX Spot , and, tie up between NCDEX Spot and the Banks for Warehouse Receipts Scheme through MSWC has been done.
II. Outcome and Output Monitoring Indicators
6. The details of Outcomes & Output Monitoring Indicators have been given in the table below: