SECP proposes national spot market to improve farmers’ access to finance

Business Recorder reported that the Securities and Exchange Commission of Pakistan has proposed a national agricultural spot market. The planned platform would bring growers, storage operators, lenders and purchasers together through electronic trading. The goal is to lift prices paid at the farm gate, reduce post-harvest losses and widen farmers' access to finance.

Farming accounts for 23.44% of Pakistan's GDP, and the chairman put the value of crops at roughly Rs8.8 trillion. Post-harvest losses are put at 20% to 40%, and each percentage point equals about Rs88 billion. Approved warehouses offer roughly 326,000 metric tonnes of capacity, against yearly output of dry commodities near 55.7 million metric tonnes. Under the framework, farmers could borrow from banks against produce stored in approved warehouses.

Trading would rely on uniform quality grades, open bidding and warehouse receipts issued electronically, with provincial authorities keeping oversight of the markets. The initial commodities would be wheat and rice, along with maize, cotton and sugar. Sidhu also described a capital market agenda that targets 2.5 million stock market investors, alongside a financial awareness campaign aimed at young people. He added that the PSX still offers opportunities, and he called for simpler account opening and a separate legal framework to oversee audit firms.