| Speaking on the sidelines of the conference on business opportunities in agriculture organised by the Confederation of Indian Industry, the managing director and chief executive officer, PH Ravikumar said, "The exchange will start trading in rice futures by January 2005 and has the necessary approvals from the Forward Markets Commission (FMC)." The futures in three to four rice varieties. |
| Ravikumar said the exchange was planning to introduce futures trading in commodities like jeera, chilli, gur (molasses), steel and other base metals like copper, zinc and aluminium. |
| Subsequently, energy futures would be launched but only after a new regulatory framework was in place. NCDEX would like regulatory changes to allow trading in options and indices. |
| The The ministry of consumer affairs had re-introduced a Bill in Parliament to amend the Forward Contracts Regulation Act (FCRA) to allow options trade in commodities when the United Progressive Alliance government came into power. |
| The bill was first introduced in 1998, but was yet to be passed. |
| Options and indices trading were expected to improve volumes in commodity derivatives trading. NCDEX was trading in 24 commodities at present with average daily volume at Rs 2000 crore. |
| The exchange would also consider starting weather futures in the long term, provided some changes in the country's laws and regulations were made. |
| "Today, the Forward Markets Regulation Act permits contracts which can be physically delivered," he said. "So we are trying to find out a solution or an amendment to the act." |
| Energy trading was held up by the Bill under discussion for the petroleum and natural gas sector entailing the establishment of a sectoral regulator before launch, which would approve energy trading formats, Ravikumar said. |
| India imported more than 70 per cent of its crude oil for 18 refineries with 2.5 million barrels per day capacity. |
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