Safal to trade in more products

Bangalore-based Safal National Exchange of India Ltd (SNX), an electronic platform for trading in fruits and vegetables, plans to extend the trading platform in sweet lime, oranges, grapes and apples within the next four weeks.

SNX is a joint venture between the venture of FTIL, Multi Commodity Exchange (MCX) and National Dairy Development Board (NDDB).

Speaking on the sidelines of a seminar in Kolkata on Wedenesday, Ravishankar Natarajan, chief executive officer of SNX, said the exchange also planned to introduce potato trading by the end of this February.

The exchange, which started operations barely two weeks ago, is witnessing daily trade volume of close to Rs 5 lakh per day, with about 250 registered members.

The exchange aims to have 1,000 members by the end of this fiscal, with daily transaction worth Rs 1 crore. Natarajan said, indirectly the exchange is linked with 150 farmers' association, each having at least 200 farmers. The exchange at present executes on-line trading of Kinni (a variety of orange), banana and onion.

The members of the exchange are exempt from the rules of the APMC Act in the states of Karnataka, Andhra Pradesh and Maharsahtra.

With NDDB exempt from the Agriculture Produce Marketing Committee (APMC) Act in Maharashtra, Karnataka and Andhra Pradesh, SNX members are exempt from the APMC rules, which does not allow spot exchanges, in the states.

In Tamil Nadu, as the APMC act already provides for the reforms as suggested in the model Act circulated by the Centre, SNX members can participate in trade for contracts deliverable in the state.

Natarajan was confident of starting potato trading in West Bengal through SNX, even as the APMC act remains a hurdle for major exchanges in rolling out e-markets linked with them.

"By the end of February we will start potato trading. It may not be for West Bengal initially, but we will start it for Agra," he said.

Regarding the settlement norms the exchange employs two systems, T+2 and T+7 days for payment in cash and credit respectively.

For the credit payment the exchange has entered into arrangements with four banks namely HDFC Bank, Axis Bank, ICICI Bank and Union Bank of India.