NCDEX to focus on non-farm goods

The National Commodity and Derivatives Exchange (NCDEX) is shifting focus to politically less sensitive commodities such as metals in a bid to steer clear of constant government intervention in farm commodities futures, Managing Director P.H. Ravikumar said on Tuesday.

"We already have a stronghold in farm commodities... We have now started focussing on metal and energy contracts as there is less government interference in these commodities," Ravikumar said.

Last year, fears that traders might be distorting price discovery and leading to a speculative rise in prices had led the government to de-list urad and tur futures. Listing of fresh wheat and rice contracts were also banned to curb a speculative increase in prices.

The delisting of these contracts had hit NCDEX as its focus was on farm commodities. Ravikumar said NCDEX has started getting "good business" in gold and silver futures after shifting gear, and the exchange hopes to replicate its success story in base metals and energy futures.

The exchange has already launched trading in steel, copper, aluminium, zinc and nickel among base metals, as also in furnace oil and Brent crude.