Trial e-trade in sugar commences

National Commodity and Derivatives Exchange (NCDEX) has commenced trial run for electronic spot trading in sugar, a senior exchange official said.

"We have launched (electronic spot) trading on Wednesday only in sugar," the official told NewsWire18. Spot trading on NCDEX's electronic platform has been launched in Kolhapur sugar, the official said.

"The commodity is classified as manufactured commodity, and doesn't fall under the purview of the APMC Act," the official said.

This initiative is the first of its kind in the country, and will lead to transparent and organised trade in sugar, a Mumbai-based sugar analyst said.

"We welcome the launch as it will be a bigger marketplace for sugar industry," said Prakash Naiknavare, managing director, Maharashtra State Cooperative Sugar Factories Federation.

The platform will bring transparency in sugar trading, and increase the spectrum of buyers across the country due to its online nature, Naiknavare said.

NCDEX is likely to make a formal announcement of the launch in a few days, the official said.

The three national commodity derivatives exchanges "" NCDEX, MCX, and National Multi-Commodity Exchange "" all have plans to open electronic spot exchanges to complement their futures platform as well as organised spot trade.