The National Commodities and Derivatives Exchange (NCDEX), the country’s biggest agriculture commodity exchange, is contracting a major comeback with plans to launch futures trading in Coffee and PVC (polyvinyl chloride).
This is part of its plan to launch new contracts in commodities that are not price sensitive. The exchange is also planning to initiate Liquidity Enhancement Scheme (LES), which is considered as market making, in steel, said Arun Raste, Managing Director, NCDEX. The exchange has got the clearance of market regulator Securities and Exchange Bureau of India (SEBI) for launching the LES in steel.
NCDEX had faced a major upset when SEBI last year suspended futures trading in seven commodities including non-basmati rice, wheat, green gram, soyabean and its derivatives, rapeseed-mustard complex, crude palm oil and chana for one year.Among these commodities, NCDEX had a major share in soyabean, rapeseed-mustard complex and chana trading.
“We have done a complete study and were surprised that coffee commands a 30% market share in hot drinks. The market for Coffee is energetic with a lot of leading brands contesting for prime position,” Arun Raste said. The exchange expects to launch futures trading in coffee by the first quarter of this fiscal year and at the same time, work on LES for steel, he added.
