Mother Dairy Foods to set up exchange for spot trading

New Delhi, Sep 19 (UNI) Financial Technologies India today said Mother Dairy Foods Processing (MDFP), a group company of National Dairy Development Board (NDDB) has signed a joint venture agreement with the company and its susidiary Multi Commodity Exchange of India (MCX) to form Safal National Exchange of India Ltd (SNX).

To be headquartered at Safal Market in Bangalore, SNX would be a subsidiary company of MDFP with 51 per cent shareholding. MCX and the company would jointly hold 49 per cent.

Under the agreement, Safal, NDDB's Fruit and Vegetable Project, will provide its expertise in post-harvest handling of perishable commodities, organising farmer associations while the company and MCX will provide the core technology along with the domain expertise and know-how to setup the first Spot Exchange for trading in horticulture, floriculture, dairy and allied products in the country.

SNX aims to provide the required infrastructure for electronic trading in horticulture, floriculture, dairy and allied products bringing in greater transparency, accessibility, and price discovery.

''While others have talked about spot exchange for a long time, SNX will be the first actually execute and set it up. SNX will have significant time-to-market advantage, as NDDB has approvals from a number of states to set up horticulture markets,'' Financial Technologies Chairman and Managing Director Jignesh Shah said.

The exchange-based spot trading will allow producers to get the best possible price for their commodity at a given point of time, since buyers from all across the country will be able to buy commodities through SNX.

This joint initiative will provide a nation-wide platform for trading in horticulture (fruit and vegetables), floriculture, dairy and allied products.

SNX will also provide on-line price dissemination and an efficient warehouse-based delivery system, which will complement the existing efforts in the supply chain management of perishable commodities and reduce wastage.

Being a neutral integrated platform, the exchange will benefit not only individual producers, but also farmer associations, co-operatives, corporate houses and other stakeholders.

SNX will provide the benefit and convenience of efficient price discovery and trading to producers and thus widen the scope of the market across the country. The exchange will unlock unprecedented value through benefits From better prices, transparent trading, guaranteed trades, better warehousing and logistics and lower marketing costs for farmers, traders and consumers.

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