Online turmeric trade on Sangli bourse soon

Taking the Forward Markets Commission's initiative forward, the Spices and Oilseeds Exchange is all set to flag off online trading in turmeric futures in a month.

At present, turmeric is most heavily traded on the National Commodity & Derivatives Exchange (NCDEX).

The Sangli-based exchange has sought the regulator's permission for an upgrade of its trading system from "open outcry" to online in a bid to make turmeric futures available for May delivery and is awaiting for the response.

For the upgrade, the comex is sourcing technology from the Federation of Indian Commodity Exchanges (FICE), which "� headed by veteran Suresh Kotak "� is expected to play an instrumental role in turning the fortunes of regional commodity exchanges by offering them cheaper technology and other support systems.

"We are awaiting the regulator's nod for trade in turmeric for which we had applied sometime ago," Chairman Lokchand Nemani said.

Depending on the success of turmeric trading, the comex will expand to other commodities such as sugar and maize later. "We have plans to launch other agri commodities, but till turmeric sees good volumes no initiative will be taken," he said.

The 50-year old exchange has been reeling under thin volumes with lacklustre trade for long, mainly since the launch of multi-commodity exchanges such as the Multi Commodity Exchange of India and NCDEX. However, it has approximately 75 dedicated members keen on trading on its platform, off course online. "Hence, attracting volumes won't take much time," a Spices and Oilseeds Exchange official said.

"Although trade has seen a shift from open outcry on regional commodity exchanges to online on national exchanges, our confidence level has remained intact as there is the liking (of participants) for tradition," Nemani said.

Implementing the FICE technology "� to move from open outcry to online "� will cost approximately Rs 4 lakh initially. But the maintenance cost, which depends on the volume of trade, is yet to be negotiated with the technology supplier.

This (Rs 4 lakh offer by the FICE) is far below the cost of national leaders-offered technology, which would have touched Rs 50 lakh.

The exchange can't afford to invest such a huge sum at this juncture, the official said, adding "so it has opted for a cheaper technology despite less than appreciable credibility of the service."