Anil Ambani Group company Reliance Money along with the National Multi-Commodity Exchange (NMCE) will set up a spot exchange for agricultural produce aimed at facilitating electronic trading in agri products.

The two companies would set up National Agricultural Produce Marketing Company of India Ltd (National APMC Ltd) that would provide required infrastructure for electronic trading in agricultural products that would bring greater transparency, risk management capability and price discovery.

"Electronic spot trading will unlock unprecedented value through benefits from better prices, transparent trading, guaranteed trades, better warehousing and logistics and lower marketing costs for farmers, traders and consumers," Reliance Money CEO Sudip Bandyopadhyay said.

At the outset, the National APMC would set up delivery centres in Rajasthan and Gujarat and the electronic platform for spot trading in agri commodities would be operationalised in later part of 2008, a company release said.

"We will initially focus on these two states and later expand our presence to other states. We plan to reach out to all the 7,500 Agricultural Produce Marketing Committees (APMCs) across the country over the next one year," NMCE MD Kailash Gupta said.

It will provide the benefit and convenience of efficient price discovery and trading to producers and thus widening the scope of the market across the country.