5 new items added to NCDEX basket

NCDEX will be expanding its futures trading basket with rubber, jute, guar, pepper and chana (gram) from April 12. These contracts will run for three concurrent months.

With this addition, the total number of commodities traded on NCDEX will be 15 - gold, silver, medium staple cotton, long staple cotton, soya seed, soya oil, RM seed, RM oil, crude palm oil and RBD palmolein.

P H Ravikumar, managing director, NCDEX, told the media, "The introduction of futures contracts in these commodities will add depth to commodity markets and provide a platform for a variety of participants including growers, users, traders and investors." India is the leading producer of jute, pepper, chana (gram) and guar, while it is the third largest producer of rubber.

"Our focus has been primarily on agro commodities given our goal of bringing benefits of commodity exchange to the agricultural sector. These commodities have tremendous potential considering that they account for output valued at over Rs 12,000 crore per annum in the physical market and are important drivers of the agricultural sectoral growth." Ravikumar added.

These new additions would expand the geographic coverage of NCDEX to virtually all states. The products have been chosen because of their importance in terms of value and size of consumption, and the needs of participants.

The new contracts - like the existing suite - were designed to attract a large number of actual users including corporates which depended on cheap raw materials and were exposed to price risks related to commodities. The exchange crossed Rs 50 crore volume (one-way) on March 3 at only its 54th trading session.

"These commodities are expected to sustain and grow this lead" he added. NCDEX Ltd., an on-line national, multi-commodity, demutualised commodity exchange, has over 200 members spread across more than 110 centres linked through VSAT and leased lines at over 1,000 terminals.