Indian Sugar Exim Corporation Limited e-platform. INDIAN SUGAR emarket (ISeM)

Transcription

1 Indian Sugar Exim Corporation Limited e-platform INDIAN SUGAR emarket (ISeM)

2 History Indian Sugar Exim Corporation Limited (ISEC) Formed jointly by the two apex bodies of the sugar industry in India viz. Indian Sugar Mills Association (ISMA) and National Federation of Cooperative Sugar Factories Limited (NFCSF). Incorporated in 1969 under the Companies Act A credible exporter of sugar and allied products and member of The Refined Sugar Association of London (RSA) and The Sugar Association of London (SAL). Since 1991, ISEC has been exporting preferential quotas to EU and the USA as State Trading Enterprise (STE) nominated by the Government of India under Indian Foreign Trade Policy till 2015 when the exports were put under Free Regime. In , ISEC undertook export of MIEQ quotas allocated to the sugar factories on no loss no profit basis to help them achieve financial liquidity through liquidation of inventory levels.

3 Features of Indian Sugar emarket Vendor Management Seamless EMD Management with Direct Host to Host Banking Integration Trade Management Price Discovery Mechanism Delivery Tracking Clearing & Settlement Mechanism Continuous Market development Increasing Buyer/Seller Base Regular information of Physical Market Prices Support for documentation as necessary Handholding and Training for the empaneled Buyers/Sellers Customized Systems- Best suited to Buyers and Sellers You Win We win

4 Components of emarket Platform Members Registration and Support (Buyers/ Sellers) Settlement and Payments Trade Management Post Trade Management Price Discovery

5 Sale of Sugar Proposed Auction formats English Forward Auction Yankee Forward Auction Continuous Auction Reverse Auction

6 Pre-Auction Activities ISeM would assist sugar mills to formulate the Contract Note for sale of sugar through ISeM platform ISeM will provide training and support to Sugar Millers and Buyers on the e- Platform ISeM would continue to map the geographies commodity-wise and register potential buyers. ISeM will schedule the every day auctions, assist buyers / sellers. ISeM will intimate the buyers/sellers /text/call. regarding the auction schedule via

7 e-auction Process Flow Registration of Vendors Contract Note Published on ISeM EMD Deposit & Auction Day Auction summary shared Delivery Period (DP) starts from next day of issue of DO or as per contract note Issuance of Delivery Order (DO) by Sugar Mill Deposit of 100% sales proceed by successful bidder(s) as per contract note Bid Acceptance and Confirmation by sugar mill Stocks lifted by the bidders within the DP Sugar Mill confirms the lifting of contracted quantity EMD Released after deduction of ISeM Transaction Charges Trade Concluded!

8 Post Auction Activities Commodity quantity settlement is done on ISeM system Funds are paid by the buyers into the ISeM settlement account Provision of delivery order and invoice generation through the system Lifting of entire stock as per DP ISeM would transfer the funds into respective Sugar mills account. Trade reports and entire details of bids provided to Sugar Mills. Reports are system generated

9 How does English Forward Auction work? The trading process in English Forward Auction Offered Quantity, Specifications, Place of Delivery, Delivery Period will be iniimated by the Seller Buyer bid the Ex-Factory purchase price. Base Price: Ex-Factory Price Seller willing to Sell Final Bid Price

10 English Forward Auction Bidding Rules Buyers can quote their price against a fixed quantity. Buyers can revise their price bid upwards and only latest bid will be considered. The Auction runs on Price Time Priority (PTP). In case a bid is received 3 minutes prior to the auction closing time, the auction schedule shall be automatically extended for 5 more minutes. There shall be maximum of 3 such extensions.

11 Scenario Offered Quantity Sugar M MT

12 How does Yankee Forward Auction work? The trading process in Yankee Forward Auction Seller will upload Offered Quantity/minimum bid quantity (if any) Specifications, Place of Delivery, Delivery Period and base price, if any. Maximum Offer Quantity (MOQ): Maximum quantity seller willing to sell. Base Price: Ex-Factory Price Buyer willing to Pay. Buyer bid Ex-Factory price by mentioning the required quantity/minimum bid quantity and purchase price.

13 Yankee Forward Auction Bidding Rules Buyers can quote their required quantity and base price. Buyers can revise their price bid and quantity subject to maintaining the minimum quantity. Buyers can revise their price bids upwards and only latest bid will be considered The Auction runs on Price Quantity Time Priority (PQT). In case a bid is received 3 minutes prior to the auction closing time, the auction schedule shall be extended for 5 more minutes. There shall be maximum of 3 such extensions.

14 Scenario 1 Offered quantity Sugar M MT

15 Scenario 2 Offered quantity Sugar M MT

16 Scenario - 3 Offered quantity sugar M MT

17 Continuous Market Process for Sale of Sugar

18 How does Continuous Market work? Offered Quantity, Specifications, Place of Delivery, Delivery Period and base price, if any, will be uploaded by the Seller Buyer bid Ex-Factory price by mentioning the required quantity and purchase price. Best Selling Quantity (BSQ): Maximum quantity seller willing to sell Best Selling Price (BSP): Maximum price seller willing to sell Best Buying Quantity (BBQ): Maximum quantity buyer willing to buy Best Buying Price (BBP): Maximum price buyer willing to buy

19 Seller Tasks Registration Upload product specification subject to minimum parameters Product specification should comply with BIS & FSSAI To enter Minimum and Maximum offered quantity and all relevant details prior to auction date To upload contract note, if so desire Accept/Reject full or partial bids and payment of EMD Invoicing to winning bidders Delivery of Goods

20 Buyer Tasks Registration View product specification of the offered product Verify the additional charges such as freight charges, insurance, taxes etc. Enter the bid quantity and price for each round Bidder can modify their bids upward any number of times during round as per bidding rules Only latest bid considered Inspection and quality check of quantity offered by seller Make payment as per contract note. Take delivery of goods within specific time

21 Thank You