NSEL may start online spot trading in rice in October

National Spot Exchange Ltd (NSEL), an electronic spot market, is likely to launch rice contracts in basmati and non-basmati varieties in October. "As the harvesting of rice begins in October, we plan to unveil new rice contracts during this time," National Spot Exchange Ltd (NSEL) Managing Director and CEO Anjani Sinha told PTI.     

Trading will be allowed both in basmati and non-basmati varieties. The first contract will be launched in Punjab and Haryana, two of India's key rice-producing states, he said. NSEL has already got the requisite permission from the state government to start rice trading on the spot exchange.     

Paddy output in Punjab and Haryana stood at 166 lakh tonnes and 48 lakh tonnes respectively in 2008-09 Kharif season.On recently launched wheat contracts, Sinha said, "We have received good response in Rajkot, Gujarat. On an average 1,000-2,000 tonnes of wheat have been exchanged daily on the platform".     

NSEL, which commenced its live operation in October 2008, is offering spot trading in 12 commodities, including wheat, tur, urad and bullion. According to experts, spot exchange trading has a market of Rs 11,00,000 crore in India.