Iffco picks up 12% stake in NCDEX

Iffco has membership of over 37,000 co-ops

The Indian Farmers Fertilizers Cooperative Ltd (Iffco) has taken a 12 per cent equity stake in the National Commodities and Derivatives Exchange (NCDEX).

Managing director of Iffco, U S Awasthi, said, "Iffco's association with the NCDEX will now widen the scope for farmers in finding the right price and hedging associated risks."

"With this arrangement we will be facilitating our members' societies to participate on the exchange platform and thereby provide enhanced economic strength and benefits to the farmers," he added.

Iffco has a membership of over 37,000 cooperatives having over five crore members spread all across the country.

P H Ravikumar, managing director and chief executive officer, NCDEX said, "Iffco's main objective has been to assist Indian farmers through timely supply of reliable, high quality agricultural inputs and services in an environmentally sustainable manner and to undertake other activities to improve their welfare. Iffco's shareholding in the NCDEX would provide both the organisations with synergies for the benefit of the producers."

He added that, "It blends perfectly with the NCDEX's aim of price discovery and price dissemination for agricultural commodities. This will be the beginning of a mutually benefiting partnership and take us towards our goal of facilitating optimum cropping patterns based on market led requirements as reflected by the prices on our platform."

Iffco has no stake in any other commodity exchange. The other shareholders in the NCDEX, include Crisil, ICICI Bank, Life Insurance Corporation, National Bank for Agriculture and Rural Development, National Stock Exchange and the Punjab National Bank.