May 4, 2009. New Delhi.  There is going to more policy intervention and right type of regulation from the government in the coming years both in the real and financial world. This was disclosed today by Mr. Rajesh Kackar, Additional Secretary, Ministry of Consumer Affairs, at a seminar organised on, “Opportunities and Online National Spot Market in Commodities’ at PHD Chamber. Given the current economic set up, there has been a shift in the policies in the recent months and the same are likely to be more intrusive.  He emphasized that it would be important to have the right regulation to avoid any adverse impact. The success of on line spot market exchanges will be determined by the value that the exchanges can give to the customers.

Mr. Rajesh Sinha, Head NCDEX Spot Exchange Ltd, said that rolling settlement of trade on a T+1 or on the same day will help in the growth of spot exchanges.   Restrictions on inter-state movement need to be removed. He emphasized that the APMC Act should be amended so as to provide recognition to e-option or trading through on line spot exchanges in all the States.  Further, the on line spot exchanges may be given exemption from the provisions of APMC Act or mandi bye laws and they may be regulated by the State Agri Marketing Board.  Online Agri markets must have easy entry and exit routes for its members and farmers.

Mr. Sinha said that about 450 crores of cotton has been sold recently in a single day in the Online National Spot Market and the exchange was greatly helping in developing linkages with the actual buyers with the sellers and buyers getting good prices across the length and breadth of the country. “Recently a seller in Maheshpur, in Jharkhand who was earlier getting 730 Rs quintal for maize got 850 rupees , the Delhi rate because of online trading.” added Mr. Sinha. 

Mr Vijay Mehta, Chairman, Capital Market Committee, PHD Chamber emphasized upon the importance of a stable policy environment such that frequent bans and other artificial restrictions are avoided. He called for the need to have sophisticated reliable and convenient warehousing facilities as also granting adequate powers to the regulatory to make it autonomous and independent for an orderly development of the commodity market and instill greater confidence among investors

Anjula Singh Solanky
Dy. Secretary-Media Relations
PHD Chamber of Commerce and Industry