National Market Access to Farmers- Forward Contracts in 17 New Commodities on NCDEX Platform Soon

NCDEX, the leading commodity exchange in India 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.

Launched on September 25, 2014, Agrim Sauda (NCDEX forwards) have received an encouraging response from the market with 3310 MT of commodities being traded so far (82% of it being maize and 18% sugar).

A special lightweight membership of the forwards segment known as Commodity Participant Members (CPM) is being offered by the Exchange. The Farmer Producer Organisations (FPOs) are being offered concession in minimum networth criteria and charges; helping them not only get fair prices but also reach out to a national market; bringing about farmer inclusion. As many as 21 new entities have applied for membership in the Commodity Participant Members (CPM) category, created exclusively by NCDEX in the forward segment. Close to 60% of these applications are from FPOs alone.

“Agrim Sauda has the potential to radically overhaul agricultural marketing and bring hope to India’s 119 million farmers. Bringing forward trade under the regulatory framework along with spot as well as futures trade and integration of these three segments will, ultimately, provide market participants with a more efficient and effective means of managing exposure to commodity-price volatility.” said Mr. Samir Shah, MD & CEO, NCDEX

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.

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.

ABOUT NCDEX:

As India’s leading online exchange, NCDEX is where customers repose trust. It offers the widest range of benchmark products across agriculture, metals and precious metals. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only exchange in the country promoted by national-level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology and risk management skills.

For further details contact:

Shalaka Kagathra - 9820572798 NCDEX

Kalpesh Sheth – 9820305936 NCDEX

Delna Irani- 022 67574444

Minakshi Mishra - 9833320866