Saddled with a drastic decline in turnover, India’s second-largest commodities derivatives trading platform, the National Commodity & Derivatives Exchange (NCDEX), has planned a three-pronged approach to improve volumes.
It has decided to launch more investor-friendlly contracts in non-agricultural segments, improve services in line with global standards and organise more education/awareness programmes this year. After a lifetime high record of Rs 8,191.7 crore daily average turnover this February, this declined 32 per cent in March to Rs 5,550.2 crore. It fell another 22.4 per cent to Rs 4,305.9 crore in April, measured till the 14th.
“We are continuously watchful on the decline of the exchange turnover and exploring issues to arrest the fall. Consumer awareness is the single biggest option to attract both bulk and retail participation in commodities, which we are also trying. But it will take some time to recover,” said Vijay Kumar, chief business officer of the exchange.
NON-AGRI DESERTIONS
The major loser was the non-agricultural segment, which had started off well this year. NCDEX plans to strengthen gold, silver and crude oil contracts. It may revamp Brent crude to traders’ specifications in coming months.
“There will be more contracts that are investor- friendly in the non-agri segment, while some widely followed markets like edible oil could also be considered for expansion,” said a spokesperson.
The Rs 980.8 crore of daily average turnover in gold this February plunged in March to Rs 659.8 crore, then sinking to a meagre Rs 13.5 crore daily average in the April 1-9 period.
In the crude oil segment, daily average business fell from Rs 1,906 crore and Rs 1,618 crore in January and February, respectively, to Rs 712.6 crore in March and Rs 174 crore till April 9. The highest daily turnover so far was Rs 10,916.1 crore on February 4.
On an average, the exchange organises 10 awareness programmes every month. It organised around 100 last year, which it wants to accelerate this year, especially in remote Indian towns. “It is time to step out and accelerate such programmes to create more awareness among the trading and farming fraternity,” said Kumar.
