Commodity exchange NCDEX today announced the launch of the forwards segment, Agrim Sauda, on its national level electronic platform.
The contract will be available from tomorrow, September 25, 2014, NCDEX said in a release issued here.
"India needs well-functioning agricultural markets where rising incomes improve the lives of millions of farmers and high quality food can reach 1.25 billion consumers, thereby becoming an integral part of inclusive growth transformation.
"With this initiative, we are attempting to bring real inclusiveness in the real economy," NCDEX Managing Director and CEO Samir Shah said.
It will offer the benefits of transparent trade practices and national market reach through registered FPOs (Farmer Producer Organisation), he said, adding that it will help increase the geographic reach of buyers and sellers.
NCDEX is providing opportunity for physical market players to reduce the counter-party default risk by executing their bilateral trade under the regulatory framework of the Exchange as also the Forward Markets Commission (FMC), without having to give up their comfort of trading in contracts customised to their needs.
Unlike the futures contracts wherein the specifications are standardised, the 'Exchange traded Forward contracts' will allow trading parties to negotiate quantity and also the quality of the underlying commodity, date, place of delivery and settlement price as per their mutual requirements.
To begin with, this facility is being offered for sugar and maize and will be extended to other commodities soon.
