Collaborative Research documents
Manual of Operations of the Enhanced Electronic Trading System (EETS) for Corn. EETS.SOP-1
This document defines the policy and process to trade corn that is deposited in designated warehouses. Because of the mismatch of corn supply with demand in the country due to seasonalities in production, aggravated by the differences in location between corn production areas versus consumption/user areas, prices of corn fluctuate over a wide band. In this situation, the EETS for Corn appears to be a workable initiative for enabling direct transactions between buyers and small sellers at minimal cost and time lags with adequate safeguards against contract defaults.The EETS for Corn was introduced as an initial project of the government with the support of private sector towards supporting corn farmers in marketing their produce and allowing them to improve income through less marketing layers and costs. This system now provides liquidity mechanism to accredited corn farmers with NFA initially procuring deposited stocks at pre-determined price (close to market) in the meantime they are waiting for a buyer. Bids can now be transmitted electronically through the NFA’s computer system via the internet and transactions/deals are done in near real-time basis. Finally, the electronic system is more transparent and could be a credible monitor of price and market trends for use in decision-making both by the private and government sectors.