Pakistan exchange in talks with NMCE

National Commodity Exchange Ltd (NCE), Pakistan's first commodity futures exchange, has initiated dialogue with National Multi-Commodity Exchange of India (NMCE).

Formed with 40 per cent equity from Karachi Stock Exchange and 10 per cent each from Lahore and Islamabad stock exchanges, NCE does trading in wheat, rice, sugar, cotton and gold.

NCE has enquired about contract specifications of wheat and rice futures launched by NMCE on December 13, 2003.

Kailash Gupta, managing director of NMCE, said, "This is a good beginning for commodity futures trading in the region. Of late we have been receiving proposals from some of the leading trading houses from Pakistan for trading in oilseeds, vegetable oil and oil cakes. Traders and companies from Singapore, Malaysia and China have also shown keen interest in trading on NMCE. We will be seeking permission from the government of India to allow the foreign firms to trade on NMCE."

NMCE was promoted by Central Warehousing Corporation (CWC), National Agricultural Cooperative Marketing Federation of India Limited (NAFED), National Institute of Agricultural Marketing (NIAM), Gujarat Agro Industries Corporation Ltd. (GAIC), Gujarat State Agricultural Marketing Board (GSAMB) and the domain expert Neptune Overseas Ltd.

Launched on November 26, 2002, it has been averaging daily turnover of over Rs 150 crore, and did a record Rs 355.21 crore worth of trades on May 16, 2003. Over 324 traders at 115 locations use NMCE to trade in 56 commodities.