National Commodity & Derivatives Exchange (NCDEX), the country’s leading commodity derivatives exchange, will soon extend the forwards trading basket to include 17 additional commodities; which comprise of major cash crops constituting bulk of the physical agri trade in the country. This move comes on the back of a successful launch of exchange traded forwards in sugar and maize.
The exchange has recently received approval from FMC for forward trading in 17 commodities including 29 MM Cotton , Barley , Castor Seed , Chilli , Coriander , Crude Palm Oil , Chana , Guar Gum , Guar Seed , Jeera , Mustard Seed , Refined Soya Oil , Shankar Kapas , Soybean , Turmeric , Cotton Seed Oil Cake and Wheat.
Agrim Sauda (NCDEX forwards), launched on September 25, 2014, has received an encouraging response from the market with 3310 MT of commodities being traded so far (82% of it being maize and 18% sugar). Unlike futures contracts, where contract specifications are standardized, Agrim Sauda allows buyers and sellers the flexibility to trade with diversified requirements while reaching out to any buyer or seller throughout the country. This coupled with reduced overhead costs and reduced counter-party default risk makes this an extremely useful tool for the trade.