NCDEX to increase spot portfolio

Following the successful launch of sugar spot trading on its electronic platform, NCDEX Spot Exchange (NCDEX Spot), a wholly-owned subsidiary of the National Commodity & Derivatives Exchange Ltd (NCDEX), is now planning to add more agri commodities to its online basket in the next two months.

Wheat, paddy, guarseed, mustard seed and maize are among the commodities the exchange plans to begin electronic spot trading soon.

Explaining the potential of agriculture commodities, Mukund S Annigeri, CEO of the country's first spot exchange, said, "Our next step would be to add mustard seed and guarseed from Rajasthan, cotton from Maharashtra, paddy from West Bengal, maize from Bihar, and wheat from north Indian states."

The exchange is also looking to add many more agriculture commodities to its portfolio after receiving necessary permissions from the Agricultural Produce Marketing Committee (APMC) and respective state governments.

For maize and paddy, the exchange has already obtained permission from Bihar and West Bengal governments, respectively.

It is also getting ready to launch spot trade in gold and silver. The exchange is understood to be holding talks with banks for clearing transactions and custodians for holding delivery.

On Wednesday, the exchange began its operations by launching spot trading in sugar (S30 Grade) on a pilot basis in Maharashtra.

All trades on the spot exchange will ensure delivery.

The exchange, which has begun its membership drive, has signed up more than 50 members and about 25 more have evinced interest in trading in sugar.