Mother Dairy selects Financial Technologies & MCX to set up SAFAL National Exchange of India (SNX)

Financial Technologies India Ltd has announced that Mother Dairy Foods Processing Ltd, a group Company of NDDB (National Dairy Development Board) and the owner of brands like ‘Mother Dairy’, ‘Safal’ and ‘Dhara’, has signed a joint venture agreement with the Company and MCX (Multi Commodity Exchange of India Ltd.) to establish the SAFAL National Exchange of India Ltd (SNX).

Headquartered at SAFAL MARKET in Bangalore, SNX would be a subsidiary Company of Mother Dairy Foods Processing Ltd., with 51% shareholding. MCX and the Company would jointly hold 49%.

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

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.

Mr. Jignesh Shah, Chairman & Managing Director of the Company said "We are proud that NDDB/Mother Dairy, well known for the ‘White Revolution’ through ‘Operation Flood’ and brands like ‘Mother Dairy’, ‘Safal’ and ‘Dhara’, has chosen Financial technologies and MCX as partners in the venture. While others have talked about Spot Exchange for a long time, SNX will be the first to not only talk about it, but to 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. For us, SNX is an important addition to the list of partners who have selected us for our leadership in providing technology and domain expertise for financial markets and know-how to foster a vibrant Exchange Ecosystem for perishables. It is also a major initiative towards realizing our vision of integrating rural India with global markets, by unlocking value and driving growth to the last mile of the value chain. The experience of SNX may well lead other industries to adopt similar technology-enabled market infrastructure".

Source : Equity Bulls

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