4. Under the Forward Markets Commission (FMC) various futures commodity exchanges have come into existence. There are exchanges in to spot marketing and future marketing of various commodities, including agriculture produce. The policy of the GOI towards spot and future marketing of agricultural produce is based on the need to expand marketing platforms to the producers so that they get higher price to the produce. At the same time certain commodities in short supply or having exorbitant consumer prices are regulated in future markets through e- trading. The legal framework for this activity provides safety measures regarding quality, price, delivery and payment mechanisms.
5. GOM has amended the APMC Act on the lines of the Model Act and the Rules under the Act provides for e-trading. The State Govt. has already granted licenses to MCX and NCDEX in Maharashtra for carrying out e-trading activity.
IV. Selection Criteria
6. All the APMC market areas will be considered for this program. The norms of selection of e- trading license holder will be provided by SP for feasibility study of virtual marketing. Around 8 to 9 locations will be selected from each district preferably one in each APMC market area with a restriction of maximum five in any one market area.
V. Activities to be financed
7. The initial phase will be to examine the options, policy implications, alternative technological solutions and the emergence of international best practices so that the MSAMB can make informed decisions as to roll-out the program. This feasibility study would be conducted in the first year of the Project.
8. The Phase 2 will involve design, development and pilot testing of two alternative virtual market platforms. During pilot testing feedback of Project team, MSAMB officials and users will be collected and accordingly changes will be made in the software to start full fledge operations of