NCDEX registers 20 FPOs, several others in pipeline

Commodity exchange National Commodities and Derivatives Exchange of India (NCDEX)has registered so far over 20 Farmer Producer Organisations (FPOs).
Several others are in the pipeline for the membership under the Commodity Participant Members (CPMs) category.
"Our focus primarily is to strengthen existing commodities and to provide direct benefits to farmers and to provide them national marketing platform though the commodity exchange," Samir Shah, MD and CEO of NCDEX, said here.
"We started the forward segment to directly link and provide benefits to farmers.
"So far, 20-22 FPOs have become our members and applications of several others are under process," he said adding there was no FPO from Rajasthan, which is the core state for the exchange.

On the recent merger of erstwhile commodity markets regulatory body Forward Markets Commission (FMC) with regulator of capital markets Securities and Exchange Board of India (SEBI), Shah said it was a game changing development and all stakeholders have expectations from SEBI.

"The merger is the biggest development since the commodities markets began operation. There are a lot of expectations from SEBI and this may bring reforms in the market," he told reporters.
"SEBI's focus in the first phase is on risk management and we expect that it would take approximately 6-8 months and in the second phase, the SEBI will develop new participation and form rules and regulations. The SEBI has already started work and has set up an advisory committee," he said.

Shah said the volume of trade in the NCDEX has increased and nearly half of the volume in northern region comes from Rajasthan.
"Rajasthan and Delhi are important areas for the exchange in Northern region and half of the volume in northern area is from Rajasthan, which is followed by other states," he said.
Shah, who was in the city to address 3rd international Guar Conference, said the exchange has emerged as the most preferred trading platform for all stakeholders in the Guar value chain.