NCDEX set to launch online spot trading

National Commodity and Derivatives Exchange (NCDEX) has announced the launch of the country's first ever electronic spot trading exchanges in Rajasthan and West Bengal.

P H Ravikumar, managing director and CEO, said the online spot trading for agri-commodities would begin by October- November this year.

Trading would be organised in mustard, pulses and guar seed in Rajasthan and in jute, potato and rice in West Bengal.

Addressing a press conference here today, he said the exchange would start similar trading systems in Haryana, Gujarat, Maharashtra, Madhya Pradesh, Andhra Pradesh, Kerala and Punjab after obtaining approval for spot trading from these states.

The new trading platform would synergize with futures trading, he added. NCDEX would invest Rs 12-15 crore for the new venture and is planning to add cotton, coffee, cashew and spices to the list of agri-commodities shortly.

He said the 7,000 odd mandis in various states would supplement the new trading systems. The exchange has set a target of 15 per cent of the total GDP within a few years and is now on the process of conducting interactive sessions with growers organisations and other stake holders in the sector.

NCDEX is expecting to rope in more number of farmers into the venture as it would help them to realise better prices. The exchange would add more warehouses to its chain of around 350 warehouses in 220 towns.

In spot trading system, the commodities would be delivered within 24 hours and there would be rigorous quality check for each lot of the stock.

Growers can sell their products without bringing it to a mandi for the maximum price tag and can postpone the sale for realising better prices.