The National Commodity & Derivatives Exchange (NCDEX) is looking to augment its presence in non-agri commodity market like crude oil by providing hedging platform to oil marketing majors.
“We are talking to participants, large ones, who use Nymex or Singapore OTC market. We are asking these participants like Indian Oil and Bharat Petroleum to source some of their crude domestically from us,” said Vijay Kumar, chief business officer, NCDEX. This apart, NCDEX would stress upon metals like steel and gold to diversify its basket of commodities, added Kumar. There was no link between commodity futures and the double-digit food inflation, Kumar further said.
"It was pointed out that inflation at present is much higher in products that are not traded on futures exchanges. I doubt that a ban on futures trading would help curb inflation. It is observed that even a ban could not contain prices. The ban on futures trading in sugar in 2009 did not bring down prices" Kumar said. The governmnet had imposed ban on futures on certain commodities to check price rise. It also banned futures trading in sugar from 2009-end. Kumar added that there was need for allowing foreign players, at least sellers, to participate at the commodity bourses to increase liquidity.
