NCDEX Forwards: Catching the Market Imagination

Forward trading platform of NCDEX, the country’s largest agricultural commodities exchange, has succeeded in attracting a number of farmers’ and trading organizations in a short span of around a month and a half.

As many as 11 new entities have applied for membership in the Commodity Market Participants (CMP) category, created exclusively by NCDEX in the forward segment. These entities include farmer producer companies as well as big corporates.

Jeevan Sangini Krushi Vikas Women Farmers Producer Co Ltd and Sant Gajanan Krushi Vikas Farmers Producer Co Ltd. from Motala-Buldhana in Maharashtra, Jai Laxmi Farmers Producer Company Limited and Shree Sant Anna Maharaj Farmer Producer Co. Ltd from Osmanabad are some major farmers’ organization in line to become a member with NCDEX forward segment. Corporates like R.A.M. Foods and Shree Renuka Sugars have also applied for the membership, besides other entities from Patna, Mumbai, Kolkata, and Dewas.

In the meantime, rising volumes reflect increasing market interest in the newly launched forward segment. According to the data compiled by the exchange, four trading companies bought and sold 600 MT of sugar on this platform. In maize, the traded quantity touched almost four times that of sugar since NCDEX launched this unique portfolio on September 25, 2014. Total quantity traded in maize is 2,300 MT as of date and six trading companies participated in the transactions.

“We see forward trading as the most ambitious and biggest initiative of NCDEX in our endeavor to empower the farmers by facilitating them to get best prices for their produce,’’ said Mr. Samir Shah, MD & CEO, NCDEX. Farmer Producer Organizations (FPOs) have only farmers as their stakeholders.

Jeevan Sangini Krushi Vikas Farmers Producer Co has 1,275 female farmers as its members. These are marginal farmers who have either land on their own name or share the land title with her spouses. This has been working in the favor of gender equalization and empowerment too, says Deepali Mankar, FPO manager. She is very hopeful about its association with forward trading.

“We sold our produce using NCDEX platform last year and our farmers could fetch around Rs 600 per quintal more than what they would have got otherwise,’’ said Mankar. “With forward launch, we expect to find many more buyers for our produce and at better prices.’’

NCDEX launched forward trading on September 25, 2014 with sugar and maize to begin with. About a week back it has initiated a process to add 24 additional commodities (Including all 21 commodities that are on future trading platform) in its forward portfolio. Under this segment, buyers and sellers agree upon the quality, quantum, and the location and mode of delivery as per their own convenience.  

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:

NCDEX

Shalaka Kagathra - 9820572798          

Kalpesh Sheth – 9820305936

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