Soach Global Founder Proposes Virtual Food Grain Asset Model for Farmers

Anubhav Dayal, founder and director of the Mauritius-based Soach Global Opportunities Fund, has proposed a virtual food grain asset (VFGA) model aimed at transforming how agricultural produce is priced and traded. The concept was presented at the Securities and Exchange Board of India (SEBI) “Manthan Ideathon,” where it won the third prize among nearly 1,000 participants.

Dayal, who has over two decades of banking and investment advisory experience, drew inspiration from selling part of his stake in the National Stock Exchange (NSE) IPO at about 25X. While SEBI has recognised the proposal through the Ideathon, Dayal noted that a formal approval for implementation remains a separate process. The proposal is currently at a concept stage for discussion and requires compliance with existing regulations rather than new laws.

Under the proposed model, the asset is based on dematerialised holdings of grains and live price discovery. The VFGAs would be issued by a group of farmers, such as cooperative societies or farmer-producing companies (FPCs), and credited to the demat accounts of individual farmers based on forecasted production endorsed by village panchayats. The units would trade on exchanges, functioning as a digital asset initially that converts into a physical asset upon maturity.

The final holder of the VFGA unit in their demat account on the maturity date would be responsible for physically collecting the food grain from the location specified in the offer document. Dayal clarified that unlike standard options trades which can be settled via cash, VFGAs require physical delivery of the produce.

To manage quality and volume, the model outlines a multi-layered verification process. This includes soil checks before seed sourcing, standardized use of seeds, water supply, and fertilizers across fields, and continuous crop monitoring overseen by government departments, similar to the dairy sector model used by Amul. FPCs or farmers' societies would handle management and reporting obligations, potentially engaging professionals for real-time reporting.

No pilot project has been initiated yet, and no specific locations or crops have been identified. Initial focus would center on crops for which the government has fixed the minimum support price (MSP), such as rice, wheat, and pulses, to establish an economic value. Dayal stated that the next step involves preparing a detailed report for SEBI's review.

"The proposal to introduce virtual food grain assets offers an interesting intersection between traditional agriculture and modern financial market infrastructure. By leveraging dematerialised holdings and existing depository systems, this model attempts to address core challenges in price discovery and market access for farmers. However, moving from a conceptual ideathon award to practical implementation will require careful regulatory navigation, robust quality assurance frameworks, and strong cooperation at the grassroots level with farmer producer organizations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes