NCDEX defers onion futures

The National Commodity & Derivatives Exchange (NCDEX) has deferred onion futures till further notice on advice from the Forward Market Commission (FMC).

The exchange was all set to launch potato and onion futures on July 7. Potato futures, however, would be flagged off as per schedule.

"The regulator advised us to defer onion futures for some time," an NCDEX official said without citing any reasons.

Another NCDEX official said, "The FMC has sought some changes in the contract design which was mandatory before launching the contract as no change is possible in the currency of the contract."

"We are apprehensive about getting clearances very soon," she added. The regulator is silent on the nature of clearances.

Meanwhile, NCDEX has set up a disaster recovery centre which would restore trade disrupted by natural calamities such as flood and earthquake.

"Being a national exchange it is important for us to protect interest of every trader of the country. If one region is affected by any unusual happenings then the centre would soon become active and restore the trade the same day," the NCDEX official said adding that such centres are mandatory in global exchanges but it is a new concept in India.

The DRC is set up as a precautionary measure in the wake of trade disrupted by torrential rains in Mumbai on Tuesday.

Although the NCDEX witnessed normal turnover on Tuesday, but the volume of trade was very thin in the morning hours.