Comexes surpass CY05 turnover in just 7 mths

The country's premier commodity exchanges have hit a new high by surpassing the turnover of calendar 2005 in just seven months of 2006.

The exponential performance follows a revamp in contract specifications, focus on region-specific commodities and increased retail awareness.

The aggregate turnover of Multi Commodity Exchange (MCX), National Multi Commodities Exchange (NMCE) and National Commodities and Derivatives Exchange (NCDEX) shot up 26.34 per cent in January-July 2006 to Rs 20, 15,058 crore compared with Rs 15,82,096 crore in calendar 2005.

While MCX and NMCE have surpassed their combined CY05 turnover in the first five months, NCDEX lagged with an achievement of 88 per cent of its last calendar year turnover till August 2, 2006.

NMCE has outperformed the two major exchanges with a commendable 383 per cent rise in turnover in the first seven months. The turnover grew four-fold to Rs 1,16,978 crore in the January-July 2006 period from Rs 23,690 crore in CY05.

MCX, which has 55.8 per cent share in the commodity exchanges' total turnover, showed a jump of 63 per cent in its turnover in the first seven months of 2006. The turnover rose from Rs 6,84,485 crore in CY05 to Rs 11,15,680 crore during January-July this year.

NCDEX, which commands 72 per cent share in agro commodity turnover, fell behind marginally compared with two other exchanges.

The exchange's turnover of Rs 7,75,799 crore in the first seven months of this calendar year was 88.7 per cent of its CY05 turnover at Rs 8,73,922 crore. The three major exchanges seem to be focusing on their growth areas.

While NCDEX and NMCE derive 80-82 per cent of their turnover from agro items, MCX earns 87 per cent of its turnover from non-agro products.

"We have revamped our overall business (trading) - in terms of almost all commodities - in the last six months and a greater emphasis has been laid on region-specific commodities through roadshows, seminars and other educational programmes," said Poonam Gupta, vice-president, business development, NMCE.

With a renewed focus, commodities such as chana, raw jute, guarseed and soya oil have started contributing much more to the exchange's business.

"Besides, customer services such as information sharing and insights into specific commodities, following spot verification, have also helped us increase our customer base," Poonam added.

Of the total turnover of Rs 20,15,058 crore achieved in the first seven months of 2006, 56.6 per cent came from non-agro commodities, while agro commodities contributed the balance.