Shree Shubham Logistics Ltd signs MoU with NCDEX Spot Exchange Ltd

Shree Shubham Logistics Ltd signs MoU with NCDEX Spot Exchange Ltd to promote electronic agricultural commodity markets
The arrangement to promote electronic agricultural commodity markets among farmers, traders & processors and other trade participants

Mumbai, October 9, 2009: In a first of its kind MoU with a private player, NCDEX Spot Exchange Limited (NSPOT) (A wholly owned subsidiary of National Commodity & Derivatives Exchange Limited -NCDEX has entered into an agreement with Shree Shubham Logistics Limited (SSLL), a subsidiary of Kalpataru Power Transmission Limited. The arrangement between SSLL and NSPOT is aimed at promoting spot markets for the benefits of agricultural commodity value chain participants—farmers, traders and processors etc.

As per the MoU, SSLL, a leading player in the agri-logistics sector, will provide warehousing and logistics support to all market participants of NSPOT in storage & preservation of goods, testing and certifications, arranging finance against the stock lying with them as well as its delivery from SSLL and other NSPOT accredited warehouse/delivery centers, benefiting farmers and traders.

Mr. Aditya Bafna, Executive Director, Shree Shubham Logistics Limited (SSLL), said: “We are extremely happy to sign this MoU with NCDEX Spot Exchange. We will jointly work to promote the benefits of electronic agricultural commodity markets among the agricultural trade participants including farmers, traders and processors”.
Mr. Bafna said “With the help of NSPOT we will be able to arrange optimum price for the farmer's produce as auction will not be limited up to few traders in a mandi and NSPOT will facilitate the trade (auction) on pan India basis through its network as more people i.e. members, large traders, processors, exporters etc will be able to participate in the auction sitting at their respective locations and also it will act as a great tool to bring more transparency in the system and gain more confidence of all the trade participants in the county.

According to Rajesh Kumar Sinha, Head, NCDEX Spot Exchange Ltd, “the arrangement is the first of its kind NSPOT is entering with a strong private player like SSLL providing a complete commodity value chain to all the commodity stake holders in agri and non agri sector. We hope that the arrangement will bring immense gains to farmers” in the coming time.

He further said that – “with this MOU we will be able to reach directly to the farmers as SSLL has got its own infrastructure providing complete commodity value chain and good network in the state of Rajasthan. We see a great synergy by joining hands with SSLL to support this neglected sector with respect to quality infrastructure, optimum price realization, reducing physical transfer which in turn will substantially reduce wastage and quality deterioration of agricultural produce and give a high return to the Indian farmers”.

With this arrangement, SSLL will be able to complete its current commodity value chain to all its customers. SSLL’s commodity value chain starts with procurement, transportation, weighing, processing i.e. cleaning, grading, sorting, testing, storage and preservation, arranging finance against stored produce, insurance, pest management services and disposal services.

Both the NSPOT and SSLL will work together in sharing of business process knowledge and expertise in implementation of logistics and settlement processes in physical deliveries and bringing producer (Farmer) and end consumer on the same platform.

Similarly, SSLL will promote and assist in facilitating financing to the participants from various banks and financial institutions against the commodities stored at its own or operated/managed locations.

Both the partners will promote the benefits of electronic agricultural commodity markets among the agricultural trade participants and will jointly hold promotion and awareness camps.

The agreement, valid for a period of two years, will be implemented in Rajasthan and Gujarat and other states, where SSLL has plans to expand its footprint in the coming days.