Now a spot market for milk trades

MCX, NDDB form bourse to trade in dairy, horticulture.

Now, get ready to trade in milk and dairy products. Mother Dairy Foods Processing, a group company of National Dairy Development Board (NDDB), has signed a joint venture with Financial Technologies (India) and Multi Commodity Exhange (MCX) on Tuesday to establish Safal National Exchange (SNX).

The exchange will only have spot trades and will not have a derivatives segment, said Joseph Messey, deputy managing director, MCX.

Mother Dairy Foods Processing Ltd will hold a stake of 51 per cent in SNX and the rest will be jointly held by MCX and Financial Technologies.

SNX, the first nation-wide spot exchange for perishable commodities in India will provide infrastructure for electronic trading in horticulture, floriculture, dairy and allied products.

It will also provide on-line price dissemination and warehouse-based delivery system. The exchange will enable farmers, milk producers organisations and traders across the country to have on-line trading.

"SNX will have significant time-to-market advantage as NDDB has approvals from a number of states to set up horticulture markets," said Jignesh Shah, chairman and managing director, Financial Technologies.

NDDB is known for the white revolution through operation flood and brands like mother dairy, safal and dhara.