The National Commodity & Derivatives Exchange (NCDEX), maintained its leadership position in the month of January with its significant performance in the agri-commodities segment. The Exchange led the agri-derivatives market in India across number of Contracts, Open Interest in Value and traded value. Reflecting 72 percent of total market share, the Exchange registered monthly total value of Rs. 37,699 crore and ADTV of Rs. 1,639 crore in agri-commodities futures segment. The average Open Interest stood at Rs. 4,203 crore, reflecting 81 percent of total Open Interest in Agri Futures market.
Despite stiff competition arising due to new entrants, NCDEX has remained undeterred, holding its pole position in the agri-commodity futures market in India.
Speaking on the performance, Kapil Dev, EVP Business, NCDEX said, “Due to dynamic demand-supply scenario, crop failures and global market dimensions, agriculture commodities are volatile in nature and hence create price risk for value chain participants. We are happy that we are able to offer the best products on our trading platform to all our market participants. Our endeavour is to keep adding innovative instruments and products that make the Exchange an inclusive platform, helping value chain participants to grow in the agri-ecosystem.”
Soy oil emerged as the top traded commodity in the Futures Contract on the Exchange with 127.2 percent y-o-y growth with total traded value of Rs 11,048 crore. The Exchange had successfully facilitated the delivery of 42,453 MT commodities in January 2020. The total traded volume in Options segment stood at Rs.0.14 crore with notional turnover of Rs.28.40 crore.
“With increased participation of farmers over the years, we have been able to onboard 258 farmer producer organisations (FPOs) which has extended our reach to 523,901 farmer base across the country. This has resulted in 33,899 MT of commodities being traded by 98 FPOs, in 17 agri-commodities, on NCDEX platform till January 2020”, Kapil added.
As India’s leading online Exchange, NCDEX offers a wide range of benchmark products across agriculture commodities. NCDEX brings buyers and sellers together through its electronic trading platform. With a widely held shareholding, it enjoys the distinction of being the only Exchange in the country promoted by national-level institutions. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology and risk management skills.