Journal of FARM SCIENCES, Vol 27, No 2 (2014)

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Electronic spot trading of tur – an economic analysis

Jyoti Naik, S.B. Mahajanashetti, H. Basavaraja, A.D. Naik, Y.N. Havaldar

Abstract


NCDEX Spot Exchange Ltd. (SPOT) is a national level electronic, transparent and institutionalized market place where farmers can sell their produce and buyers can buy the produce electronically. It was claimed that the national level electronic spot trading initiative would benefit the farmers by dealing with the challenges associated with the physical markets. The specific benefits expected of electronic spot markets included transparency in pricing, efficient spot price discovery, reduction in the number of intermediaries, warehouse receipt financing, grading and standardization of the produce and guaranteed payment. The present study was undertaken for analyzing the economics of tur marketing through NSPOT, APMC and Tur Board and examining the constraints faced by the farmers and the NSPOT officials in spot trading of tur. The study used primary data collected from 180 respondents who included 60 farmers each selling through NSPOT, APMC and Tur Board. Tabular analysis was employed for the study. The results of the study indicated that NSPOT sales of tur fetched more profit to the farmers than APMC sales and Tur Board sales. However, the results also revealed certain constraints faced by the farmers and the exchange. These problems included minimum quantity requirement for trading, lack of coordination among farmers, poor quality of the produce among others. These findings called for facilitating increased utilization of NSPOT exchange by relaxing quality restriction and allowing average quality tur also to be traded on NSPOT platform.

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