NSpot to launch maize, guar, cotton contracts

NCDEX Spot Exchange, or NSpot, is likely to launch maize, guar and cotton contracts in a few months, it’s head Rajesh Sinha informed. “We may launch maize contract for delivery in Davangere in Karnataka within a month,” Sinha said.

The exchange is also considering simultaneous launch of guar seed for delivery in Hisar, Haryana, Sinha said. The exchange already has a Rajasthan-based guar contract. Haryana is the second largest guar producer in the country.

The launch of these contracts has been slightly delayed taking into account a likely delay in harvest due to late rains, he added. NSpot is also considering launching cotton contract in association with the state-owned Cotton Corp of India, Sinha said. “We are in talks with CCI, which is the largest cotton buyer from the farmers in India,” he said.

NSpot’s rival National Spot Exchange, an arm of Financial Technologies (India), has tied up with the National Agricultural Cooperative Marketing Federation of India to sell the latter’s stocks through electronic spot trade.

However, Sinha did not say when NSpot will launch the cotton contract.