BSE Investments, a wholly-owned subsidiary of BSE, on Friday said it has entered into a joint venture agreement with Frontier Agriculture Platforms Private Limited (FAPL) to drive innovation in agriculture markets.
The objective of this joint venture (JV) is to explore the scope and opportunities available in the agricultural commodities trading space, driven by a strong impetus given by the government to bring in transparency and efficiency in this space.
As part of this joint venture, FAPL would pick 40 per cent equity stake in BSE E-Agricultural Markets Limited (BEAM), the exchange said in a statement.
FAPL will support BEAM with market linkages, connecting with stakeholders and domain knowledge.
"This JV builds on our investment in BEAM and is part of BSE group's commitment to create a world-class trading framework for agriculture commodities to the benefit of the farmers and the Indian economy," Sameer Patil, Chief Business Officer BSE, said.
Through FAPL's strong industry connect and BSE's technological superiority, BEAM aims to eliminate bottlenecks associated with spot agriculture trading, he added.
Nilotpal Pathak, Director FAPL, said that market access and linkage with the markets have been the biggest impediments for enhancing farmers' income.
"BEAM's technology platform which links the farmers with the businesses and other ecosystem players in agri-business would go a long way in making the agriculture supply-chain efficient in the country," he said.
Published 05 March 2021, 09:03 IST