NCDEX plans to roll out more contracts

The National Commodities and Derivatives Exchange (NCDEX) is currently working on the contract specifications of sorghum and groundnut oil, said its chief executive officer P H Ravikumar today.

"It will take a while before the specifications are finalised, and we will then approach Forward Market Commission, the regulator, for approval," Ravikumar said.

The exchange will also be approaching the regulator for approval to introduce contracts in nickel and tin.

Currently, the exchange is all set to launch mentha oil contracts in the next fortnight. Other national exchange, the Multi-Commodity Exchange of India (MCX) had introduced trading in mentha oil almost two months back. The commodity has been giving the MCX good returns.

Further, NCDEX is also planning to introduce Brent crude contract in a month and a half.

Currently, the exchange is allowing trading in 43 commodities with almost 80 per cent from the agriculture sector. Its daily turnover averages around Rs 4,000 crore with an average of 2,90,000 orders daily and 30,000 tonne physical delivery monthly.

On the launch of spot exchanges in a phased manner, Ravikumar said, "It will be done after getting permission from the respective state governments. The amendment of the APMC Act will allow it. Till date only six states have done it completely, and six other states have done it only partially."

Currently, NCDEX has 700 members (240 in the north, 130 in the east, 250 in the west and 60 in the south) at 470 locations across the country. The exchange saw 400 per cent growth in the first year of operation and expects around 200 per cent growth in the second year also.

"We have already achieved the growth that we expected (targeted) to achieve in FY08-FY09," Ravikumar added.