Turmeric prices to be displayed on BSE

Spices & Oilseeds Exchange to begin mock trading soon.

Turmeric will soon be the first commodity to see its prices displayed on the Bombay Stock Exchange. The Sangli-based Spices & Oilseeds Exchange, which has signed a memorandum of understanding (MoU) with the BSE to start online turmeric futures, will start mock trading in a fortnight.

The online trade, which will begin on the Sangli bourse after the success of the mock trading, will also pave the way for the BSE to make a foray into commodities trade. Subsequently, turmeric prices will be displayed on all the 2,000 terminals of Asia'a oldest exchange.

"The deal with the BSE was made to ensure maximum possible participation of traders," said Lokchand Nemani, chairman, Spices & Oilseeds Exchange.

The exchange has already upgraded its infrastructure with an investment of less than Rs 1 lakh, and is now looking for computer professionals who can handle day-to-day operations.

Nemani said the exchange only invested on infrastructure, with technological support from the BSE. "The BSE has been helping us with technology without any initial fee. But it would charge a nominal fee on daily transactions once the business starts online," he added.

The open outcry transactions on the 54-year-old exchange had led to a decline in its turnover. However, the move to introduce online trade has led to the revival of the exchange, with the bourse clocking a monthly turnover of about Rs 30 crore.

During the fortnight ended April 30, the May contract for turmeric quoted a high of Rs 2,340 a quintal on April 21 and a low of Rs 2,220 on April 26. During the period, the total traded value of turmeric for the May delivery was Rs 17.27 crore. The increase in volume was largely because of the efforts of traders to use the exchange instead of dealing on the national exchanges.

"All the 75 members of the exchange unanimously decided to bring more volume to the exchange, as required by the BSE to bring in the online facility. The sooner the volume rises, the earlier we will be connected online," said Sharad Shah, a turmeric trader in Sangli and secretary of the Halad Vyapari Association. The BSE is likely to provide training to the traders and the members of the exchange.