NCDEX Forwards Segment Sees Active Participation from FPOs, Trade Close to 8000 Tonnes

NCDEX, the leading commodity exchange in the country has achieved remarkable success in the recently launched Forwards segment. In just six months of its launch, 7888 tonnes of commodity was traded on the platform. While 27 commodities are available for trading on the forwards segment, maize, coriander, sugar, castor seed and jeera are among the most actively traded commodities.

NCDEX is the only Exchange in the country to offer exchange-traded forwards contracts. In order to make markets more accessible to the farmers and traders in mandis, a new membership category known as `Commodity Participant Members (CPMs)’ was introduced and a special discount was offered to FPOS to become members on the forwards segment. So far, 10 FPOs from Bihar, Delhi, Maharashtra and Madhya Pradesh have actively participated in the trade, while over 14 have applied for membership.

Mr. Samir Shah, MD & CEO, NCDEX said “With exchange-traded forwards, NCDEX is attempting to reach untapped segments and extend the considerable expertise it has developed over the years in creating value in the agricultural markets. Our mission is to bring national markets to farmers, mandi traders and buyers. This initiative is a path breaking approach to bring real inclusiveness in the real economy in commodities.”

The Exchange registered total volume of Rs. 2494.1 lakh with 7888 tonnes of commodities being traded, out of which maize accounted for bulk of the trade with 4100 tonnes followed by castor seed at 2330 tonnes, sugar at 600 tonnes, coriander at 520 tonnes and 228 tonnes of jeera being traded.

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.