Bangalore, December 26: In a bid to help farmers to secure best prices for their farm products, the Karnataka government is going to set up a special purpose vehicle (SPV) along with National Commodity and Derivatives Exchange (NCDEX) Spot Exchange Ltd., reports IANS.
State Development Commissioner G.V. Krishna Rau said, "The SPV will modernise the agricultural produce market committees (APMCs) across the state for holding electronic auctions, grade the produce and arrange direct payment to farmers as in advanced markets."
As part of the state's agricultural marketing policy 2013, the SPV will rationalise market practices, grade the produce and provide warehouse-based sales in market yards. Initially, major commodities and markets will be covered followed by smaller ones. The process of auction will eliminate the risk associated with securing payment.
“The SPV will facilitate warehousing, bank financing for stored produce and other facilities. We will first focus on grains and cereals and extend the project to fruits and vegetables," Rau added.