Auctions hit as chilli commission agents protest e-trading in Guntur

By TheHindu on 25 Nov 2016

The new system is a threat tolivelihood, they say. e-trading of commodities has already been introduced on a pilot basis at the AMCs in Guntur and Duggirala.

Trading at Asia’s biggest chilli market yard in Guntur came to a standstill on Monday after the commission agents stalled the proceedings, protesting against the proposals to introduce the e-trading at auction platforms.

Ever since the State government has made changes in the A.P Marketing Act, allowing e-trading for agricultural commodities replacing the conventional open auctions, commission agents have been up in arms against the move, saying that with the new system in place, they would loose their livelihood.

e-trading of commodities has already been introduced on a pilot basis at the AMCs in Guntur and Duggirala.

Under the e-trading system, registered traders would be provided with passwords to log into the online bidding portal, www.neml.in (NCDEX e Markets Limited), the leading national stock exchange in the country. After verifying the permit code, the traders would place their bids which would be forwarded to farmers through SMSes with an option of accepting or rejecting the bids.

But traders who are used to having their own way at the AMCs have been resisting the move. There are over 500 licences issued to traders, but some 150 traders functioning from various platforms have no licences. Further, zero business system under which the traders buy the produce without entering the stock into records has also been widely prevalent at AMC, Guntur.

With e-trading of commodities making it mandatory for traders to register them with the AMC, unlicensed traders are feeling the heat.

“We have introduced the system to induce transparency in the trading of agricultural commodities. Farmers will have a choice of either accepting or rejecting the bids. We will try and address the concerns of traders for sure,’’ said Deputy Director, Marketing, N. Srinivas.

In peak trading season, more than 80,000 chilli bags are traded and volume of trade stands between Rs. 80- Rs.100 crore at the market yard in Guntur.

We have introduced the system to bring transparency in trading of agricultural commodities. We will try and address the concerns of traders for sure

- N. Srinivas,Deputy Director (Marketing)

Registered traders to be provided with passwords to log into online bidding portal

After verifying permit codes, traders need to place bids

Bids to be forwarded to ryots through SMSes with options of accept and reject

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