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NCDEX likely to launch few agri-related products in coming months

NCDEX Futures contracts like guar gum, guar seed, castor, coriander, jeera have reached to a new level .

, ET Bureau|
May 31, 2019, 03.21 PM IST
National Commodity & Derivatives Exchange Limited (NCDEX) is all set to launch a number of new products in coming months in order to provide more options to the trading community in the agri ecosystem, along with facilitating more and more segments of Indian farmers producing different crops which are intended at a robust and transparent price discovery mechanism. The new launches will also cement the leadership position of the exchange, which led the segment with 83% market share during 2018-19 among all future commodity exchanges, said a release issued on Friday.

In the evolving Indian commodity futures scenario, NCDEX has achieved an average daily traded value of Rs 2143 Cr during the last financial year. The exchange has attained an annual average Open Interest of Rs 4,951 Cr in 2018-19, and the highest Open Interest achieved during the year was Rs 5,861 Cr on 11 th November, 2018.

Guar seed, guar Gum, castor seed and soyabean, the traditionally traded commodities on the exchange platform have topped the chart.

“We are excited to present the growth in the previous year as we traverse a challenging and competitive platform. Now in the new financial year, we strive to remain committed to innovating across the agri commodity sector, efficiently driving the sustainable stakeholder’s value and using our business and technological acumen to positively impact the agri economy of the nation. With the mix of opportunities and challenges, we are confident taking NCDEX to new horizons’,” said Mr Vijay Kumar, MD and CEO, NCDEX.

Looking at the potential in the agri-futures spectrum, Mr Kapil Dev, executive vice president-head agribusiness, NCDEX said, “Hardly two dozen commodities are available for trade so far on Indian commodity exchanges, while 91 commodities have the regulator’s permission for future trade. So, there is substantial scope to increase the product offerings in futures contracts, and we are planning to launch / relaunch a number of new contracts during this financial year. Additions of such contracts will help all the segments of value chain participants.” By launching a new hedging tool like Options in additional four commodities - guar gum, soybean, refined soy oil and chana, the exchange has broadened its product lines.

NCDEX Futures contracts like guar gum, guar seed, castor, coriander, jeera have reached to a new level and have healthy Open Interest in comparison to their production quantity. However, crops like wheat, chana, sugar, maize which are big in production, are still waiting to get the desirable Open Interest and trade volume.

Physical delivery is an integral part of the Agri futures trading and NCDEX has attained a total delivery of 6, 95,990 MT across all contracts of commodities being traded on the NCDEX platform last year. By completing 1,00,00,000 MT of physical deliveries since its inception, NCDEX has already achieved a major milestone in its journey.
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