NCDEX jute futures launch on Mar 19

Futures trading in jute, so far a local phenomenon, will go national from March 19 with the National Commodity and Derivatives Exchange Ltd (NCDEX) adding jute to its basket of commodities.

NCDEX chief business officer Narendra Gupta was in the city today to finalise details, including contracts and grades, for jute futures trading in consultation of the Jute Commissioner and the Indian Jute Mills' Association (IJMA), the apex industry body.

The NCDEX move was welcomed by the jute industry. Jute baron Arun Kumar Bajoria, controlling almost a third of the market, said, "The introduction of jute in futures sounds good. Only concern is what qualities of raw jute will be eligible for the trading,"

IJMA chairman Sanjay Kajaria said the proposed move was expected to succeed as the bourse would provide transparent trading through its nationwide screen based trading system.

Govind Sarda of the Sarda group, another big jute player, said the proposed trading system had great potential, especially in eastern and southern India.

Gupta said jute futures trading was expected to be a hit as many industry players already had great expertise in futures trading. The city''s East India Jute & Hessian Exchange has been in manual futures trading in raw jute and hessian for many years.

Traders and jute mill owners had been doing futures trades in raw jute in domestic and overseas markets as well. Gupta conducted a workshop at the Posta Bazar Merchants' Association today. The session was co-hosted by Mars Comtrade Ltd, a trading and clearing member of NCDEX.