BeAM (BSE E Agricultural Markets) and Haridra Lakshmi inked a deal on Tuesday to help smallholder farmers in Maharashtra earn more money. The two parties have signed a memorandum of understanding (MoU) in this regard, according to a statement released by the BSE.
According to the exchange, the MoU aims to use globally competitive market technologies to improve the efficiency of physical markets represented by these institutions in areas like knowledge transfer, education and training, and related events.
In December 2020, the leading stock exchange BSE introduced BeAM, an electronic spot platform for agricultural commodities.
Both organizations will work together with regional warehouses to implement electronic negotiable warehouse receipts (eNWRs). As a result of the agreement, both parties will be able to foster collaboration that yields meaningful results for smallholder farmers (SHFs).
Furthermore, these groups would collaborate closely with institutions that have a direct and long-standing relationship with the state's farmers. Godavari Urban Multistate Credit Co-Op Society Ltd, Surya Farmer Producer Company, and Tukai Agro Farmer Producer Company are some of the companies involved.
Maharashtra, Telangana, Andhra Pradesh, Karnataka, and Gujarat are among the states where these institutions and enterprises have a strong presence. Their members also sell and trade other commodities, such as turmeric, cotton, maize, and soybeans, in the retail market.
"The Memorandum of Understanding demonstrates that smallholder farmers can benefit from cutting-edge market technologies (SHF). Participants in physical spot markets would greatly benefit from such an initiative, assisting farmers in obtaining the most competitive pricing for their goods "Rajesh Sinha, CEO of BeAM, said.
According to Hemant Sriram Patil, a Member of Parliament, this MoU will allow farmer producer firms and farmers to benefit from BSE's cutting-edge market innovations. It would be extremely beneficial to turmeric farmers. "We're also aiming to improve Turmeric processing capacity in the region," he added.
BeAM would collaborate closely with the small-scale farmers linked with these institutions to enable them to trade electronically, allowing them to transition to more organized trading methods.
Farmers will be able to engage in "objective quality-based trade, credit linkages, electronic warehouse receipts, and forward markets," boosting their market competitiveness and resulting in the best price realization, according to the exchange.
