Sindh government to start e-trading of agriculture products through PMEX

06.10.2016

The Sindh government has devised a strategy for e-trading of agriculture products through Pakistan Mercantile Exchange (PMEX) platform. The decision was made at a meeting chaired by Sindh Board of Investment (SBI) Chairperson Naheed Memon at her office.

As a pilot project for two years, 6,000 tonnes of red chilli will be traded annually through Pakistan Mercantile Exchange's e-trading platform. Sindh Enterprise Development Fund will subsidize the trading fee of Rs 2.5 per kilogramme for growers/aggregators against 'warehouse receipts' and the Sindh government will provide aggregate subsidy of Rs 30 million to sustenance growers over the period of two years. This initiative will provide right price in a timely manner to farmers/growers, enabling them to invest it timely for other crops. Premium pricing mechanism will enable growers to invest more through quality inputs, eg, pesticides, etc.

The PMEX's trading platform will provide a chance to grower/farmer to access premium local markets/buyers as well as international markets. The Sindh government is making consistent efforts to transform conventional agri-practices in Sindh and this initiative would give farmers/growers access to wider market base. Trading through e-platform will expedite the process for growers to get the right price for their produce within a stipulated time of 72 hours.

Naheed said that the Sindh government has decided to subsidize the PMEX trading fee for two seasons through Sindh Enterprise Development Fund (SEDF) and termed it as game changer for agri-trading practices in Sindh. She said the Sindh government had planned to replicate the scheme to other commodities and added that the Sindh government had encouraged the linkage between the different stakeholders in the market and promoted a unique idea of trading red chilli through e-trading platform. Moreover, She said the Sindh government would also welcome such ideas to transform conventional agro-practices in the province.


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