NCDEX spreads network

Farmers in eastern India today gained direct access to the world commodity market thanks to the National Commodity and Derivative Exchange Ltd (NCDEX), the subsidiary of NSE.

NCDEX started giving licence for computer to computer lines (CTCL) from Monday. One of its city members, , started installing terminals in 'sabji mandis' Dayco Commodity Brokersin rural West Bengal and Orissa.

The concept of CTCL was pioneered by NSE to link brokers to NSE through CTCL at branches in remote areas. Dayco was a member of NSE.

The proprietor of Dayco and the former president of Calcutta Stock Exchange, Ajit Dey, said it was installing CTCL terminals in mandis in districts of Bardhaman, North 24 Parganas, South 24 Parganas and Medinapore in West Bengal.

Later, it would expand its CTCL network to Orissa and Tamil Nadu. "Dayco would start with 10 CTCL terminals. The number would depending on numbers," he said.

According to Dey, Dayco jointly with NCDEX would educate farmers in eastern India. "The farmers have not heard of the commodity exchange and its intricacies. Farmers do not know how to hedge. This is a whole new world for them. So we have taken joint initiative with NCDEX," he added.

NCDEX was currently trading in 23 commodities including wheat, jute, gold, silver, sugar, pepper, rubber, master seeds, pamoline and turmeric. Dey said he expected good response in commodities like jute.

"It would give a new lease of life to jute," he said.

R Ganesh of NCDEX, who was in Kolkata for the launch of CTCL, indicated many more NCDEX members in eastern India had evinced interest in CTCL. NCDEX had around 70 active members in Kolkata, mostly stock brokers.

"NCDEX will add 8-9 new commodities to its list. Tea and coffee are likely to be there," Ganesh said.