Red Chilies Sectors

Project Name                  :   E-Trading Platform for Red Chilli Growers

Project Location             :  Kunri and Adjoining Areas

Project Size                      :   Rs.15 Million

SEDF Assistance             :   Rs.5.5 Million

Institution                         :   Pakistan Mercantile Exchange (PMEX)

Project Overview

In 2011, SEDF collaborated with USAID to train 1,000 farmers for improved farm practices. Resultantly, Red Chilli crop quality improved; farmers could not get a premium for quality as the Red Chilli market (Mandi) does not trade on the basis of quality premium, which is the practice for all agri- commodities including fruits & vegetables.

Subsequently, Pakistan Agriculture Coalition (PAC) with the support of Securities and Exchange Commission of Pakistan (SECP) and SEDF piloted the 1st ever electronic trading platform for agri-commodities starting with the Red Chilli crop. SGS provided on farm testing services enabling the buyer to pay premium on the basis of quality certificate, whereas, logistic services were provided by Agility. We are confident that pilot project will enable us to identify and overcome the challenges with respect to quality based pricing of agri-commodities in the country.