Mango dealers see silver lining in online trading
Totapari mango traders in Karnataka can expect to get a fair price for their mangoes at the Safal National Exchange (SNX), an on-line spot exchange that has started trading in this commodity from May 30.
By NIDHI SHARMA, TNN |
MUMBAI: Totapari mango traders in Karnataka can expect to get a fair price for their mangoes at the Safal National Exchange (SNX), an on-line spot exchange that has started trading in this commodity from May 30.
The on-line spot exchange headquartered at Bangalore has been started jointly by Mother Dairy Foods Processing, MCX and Financial Technologies.
On the first day of trading, 24 tonnes of mangoes were traded followed by 16 tonnes the following day. The on-line spot exchange is a joint initiative that will provide a nation-wide platform for trading in horticulture, floriculture, dairy and allied products. The contracts will be specific compulsory delivery based contract. In case of totapari mangoes the delivery centre had been assigned at Krishnapuri and delivery needs to be completed the next day of trading between 2 pm and 5 pm.
After successfully running the totapari contract, the exchange may launch other contract in mangoes with additional delivery centres and also contracts in other perishable commodities like bananas, said the sources.
Contract in totapari mangoes was specifically started as Mother Dairy was an assured buyer, while local traders and farmers were the sellers. Totapari mangoes are widely used in the food processing industry in making pulps, concentrates that are used in juices.
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The exchange plans to have season specific contracts based on the arrival period of that commodity. “The period for mangoes starts from May and continues till end of June and July. Till this period SNX will have the mango contract followed by other fruits like banana,” the sources said. When contacted the exchange CEO Ravi Shanker, he said that he can comment anything only after two weeks.Earlier last year, Mother Dairy Foods Processing, owners of brand like ‘Mother Dairy’, ‘Safal’, ‘Dhara’ and a group company of NDDB (National Dairy Development Board) entered into agreement with MCX and Financial Technologies to establish the exchange. The exchange would be a subsidiary company of Mother Dairy Foods Processing with 51% shareholding, while MCX and FTIL jointly would hold the rest.
Safal, NDDB’s fruit and vegetable project will provide its expertise in post harvest handling of perishable commodities, organising farmer associations while Financial Technologies and MCX will provide the core technology along with the domain expertise and know-how to set-up the first spot exchange.
Besides providing best possible price for the commodity the exchange would provide counter party guarantee in respect of all trades and it would facilitate provision of services like quality certification, warehousing and logistics.
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