National Dairy Development Board (NDDB) conducted a national seminar of Dairy Cooperatives during November 17-18, 2014 in Anand wherein representatives from various dairy cooperatives participated. During the deliberations, it was mentioned that dairy commodity transactions are being traded through tender purchase and due to longer time cycle in the existing system, participating dairies are exposed to the price volatility. Further, prices are localised and the dairies need to incur advertisement costs, travelling etc.

Considering the above, the participants suggested that an alternative can be an internet based national platform for marketing of dairy commodities. Participants suggested that the NCDFI should consider working as a National Platform for this purpose. This would ensure transparent, fair and economic dealings for all member cooperatives. It would be also a good platform to discover the best price at a given time for both buyer and seller.

Accordingly, with continued guidance from the NDDB, NCDFI initiated e-portal ‘NCDFI eMarket’ for the trading of Dairy commodities. Subsequently,  the services are extended to Cattle Feed Ingredients, Edible Oils, Packaging Materials, Sugar, Chemicals, Scrap etc. apart from Transport Services. This platform ensures transparent, fair, economic and faster dealings for all the members.

Ascending Forward Auctions

Under an Ascending Price Forward Auction the price announced is at the discretion of the seller. The price is increased round by round only if demand exceeds supply.

Presently, butter, skimmed milk powder, cheese and ghee are covered under these auctions. The unsold offered quantities at Forward Auctions, if any, and additional stocks as may be offered by the sellers, would be made available at the NCDFI eMarket portal under Continuous Market from the next day of the auctions so as to ensure continuous supplies.

Auction Sale

Auction Sale has been developed to replace the existing tender system. Milk and milk products can be sold through NCDFI eMarket Auction Sale.

Reverse Auctions

Reverse auction mechanism allows buyers to seek competitive pricing by inviting sellers to participate in real time eAuction. Presently, Dairy Commodities, Agri Commodities and Packing Materials are being transacted in NCDFI eMarket through Reverse Auctions.

Under these auctions, buyers need to mention the required product, quantity and location. Sellers need to quote an all inclusive FOR prices. If L1 bid is acceptable to the buyer, then the contracts are concluded.