Average daily turnover of NCDEX increased 47% despite trading suspension on crucial commodities

The National Commodity and Derivatives Exchange has reported a 47% increase in average daily turnover at ₹1,857 crore in the financial year ended March 2022 against ₹1,261 crore reported in the last year. This was mostly driven by hike in agriculture commodity prices last year due to supply chain disruptions.

The growth was despite suspension of some important contracts like as soya complex, mustard and chana among others, said the exchange. The exchange keep its leadership position in the agriculture derivatives section with a market share of 80%.

The financial performance of the exchange highlights flexibility, risk management behavior of market contributors, especially in agriculture sector when the commodity market is passing through a difficult stage due to unfamiliar geopolitical disorder.

The exchange has connected over a million farmers to the exchange platform through over 400 Farmer Producer Organizations (FPOs). The open interest of market participants, increased 32% to ₹3,554 crore from ₹2,695 crore.

The agricultural landscape is witnessing a quick change with exports crossing the $50 billion mark last year and India appearing as a key sourcing centre for a number of agricultural products. This move will definitely lead to increased opportunity for the exchange, said, Kapil Dev, Chief Business Officer, NCDEX.


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