NCDEX may rope in ex-armymen

National Commodity & Derivatives Exchange (NCDEX) has drawn up plans to engage retired soldiers in commodity trading as the exchange is confident that it will deliver handsome earnings for them for the rest of their lives.

The leading agri-commodity trading platform has had several rounds of talks with the Maharashtra Ex-Servicemen Corporation (MESCO), a state government undertaking engaged in certain commercial activities for employing ex-servicemen.

The exchange is hopeful of signing an agreement with them very soon. The move, which is a first for retired soldiers, is significant as they mostly retire at 35 after which, they start looking for a viable alternative and regular income source.

Under the agreement, retired soldiers would be able to invest their hard-earned money into commodities trading.

The exchange is also in talks with its banking partners, which include the Punjab National Bank, UCO Bank, ICICI Bank and others to provide maximum possible loan for ex-servicemen for commodities trading.

To begin with, the NCDEX would start engaging ex-servicemen in the Satara, Sangli, Kolkapur, Solapur and Ahmednagar districts, where the number of such retired soldiers adds up to 55,000, one fourth of the total strength in Maharashtra.

NS Rathore, vice-president of NCDEX said about 60 per cent of ex-servicemen belong to farming background and have meagre resources with them. They have to depend on the mercy of local money lenders and commission agents to get access to spot markets of agriculture commodities.

"Now, with the NCDEX coming into the picture, ex-servicemen will be able to hedge commodity risks in an organised way through a reliable partner.

Apart from that, they would be able to save up to 10 per cent of the gross value of the produce, which otherwise goes into servicing these intermediaries," Rathore added.

"Direct access of the market and knowledge-sharing by NCDEX with its clients will help the ex-servicemen decide upon its trading activities and fetch 100 per cent realisation. Currently, only 60 per cent of the payment made by the ultimate consumers reaches them," he added.

MESCO may also create grading, assaying, warehousing and transportation facilities to achieve economies of scale for which, loans will be provided via NCDEX's banking partners.