ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed a national agricultural spot market aimed at connecting farmers, warehouses, banks, and buyers through a unified digital trading platform. This initiative is expected to secure better prices for growers, reduce post-harvest losses, and expand financing access for farmers, as outlined by SECP Chairman Dr. Kabir Ahmed Sidhu during a recent international conference.

According to the Securities and Exchange Commission of Pakistan, the proposed market will integrate standardised grading, transparent bidding, and electronic warehouse receipts to modernize agricultural trade. While provincial authorities will maintain regulatory oversight of agricultural markets, the SECP will facilitate the technological infrastructure needed for this initiative. Dr. Sidhu emphasized the importance of these reforms for the economy, noting that agriculture constitutes 23.44 percent of Pakistan’s GDP. He estimated the value of the country’s crops at approximately Rs8.8 trillion and cited post-harvest loss estimates of 20 to 40 percent, equating to substantial economic losses.

Dr. Sidhu highlighted the disparity between the current approved storage capacity and agricultural production. With approved warehouses able to store 326,000 metric tonnes, there is a stark contrast to the 55.7 million metric tonnes of dry agricultural commodities produced annually. The development of modern storage facilities and efficient supply chains is seen as a crucial step in reducing wastage and attracting investment into the sector.

Central to the proposed framework is the adoption of electronic warehouse receipts, which would enable farmers to secure bank financing against stored produce. This access to storage and financing could alleviate the pressure on farmers to sell immediately post-harvest, granting them more flexibility in market timing. Initially, the market will focus on wheat, rice, maize, cotton, and sugar, with standardised quality grades and transparent bidding to enhance price discovery.

Further measures include the registration of traders and commission agents, along with the maintenance of digital transaction records to improve accountability and protection for both farmers and buyers. Dr. Sidhu also called for the modernization of agricultural market regulations and procedures to support a more efficient trading system.

In addition to agricultural market reforms, Dr. Sidhu addressed the SECP’s broader agenda for capital market reform. This includes increasing stock exchange investors to 2.5 million and an extensive financial awareness campaign targeting young people. Simplifying stock market participation and improving financial literacy are key components of this campaign. Dr. Sidhu underscored the importance of consumer and investor confidence, reliable financial reporting, and stronger audit oversight to bolster the development of financial markets.