The Safal National Exchange, an on-line spot exchange based in Bangalore has begun online spot trading in mangoes.
SNX officials said on the first day of trading on May 30, 24 tonnes of mangoes were traded followed by 16 tonnes the following day.
SNX, a joint venture between Mother Dairy Foods Processing Ltd and MCX-Financial Technology combine, will conduct spot electronic trading in horticulture (fruits and vegetables), floriculture, dairy and allied commodities.
Last year, Mother Dairy and MCX had entered into a 51:49 joint venture to set up SNX, the country's first spot exchange for trading on perishable agri-commodities including horticulture, floriculture, dairy products and other allied commodities
Mother Dairy Foods Processing Ltd
is a group company of the National Dairy Development Board and is the owner of brands such as 'Mother Dairy', 'Safal' and 'Dhara'.
The contracts are 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.
Officials said the exchange may launch other contract in mangoes with additional delivery centres and also contracts in other perishable commodities like bananas.
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.