NCDEX plans for commodity derivatives to address NPAs, volatile agri prices

Vijay Kumar V, managing director & CEO, National Commodity & Derivatives Exchange Limited (NCDEX), plans to make commodity derivatives, more importantly options, a tool to address non-performing assets (NPA) and volatile agriculture crop prices.

He told banks, market participants and farmer organisations to use commodity options similar to an insurance policy and hedge their positions by locking minimum profits. 

NCDEX will propose to the regulator to allow options in more agri commodities like chana, soyabean and castor seed, among others, as underlying futures in these commodities are fairly liquid. 

It also proposes to make soya refined oil a deliverable contract