The Hindu Business Line : NMCE to launch futures in 4 new commodities

THE National Multi-Commodity Exchange of India Ltd plans to introduce futures trading in four new commodities soon. This includes arecanut, maize, dry ginger and bold variety pepper.

Mr Kailash Gupta, Managing Director, NMCE, said the new commodity contracts would be introduced within a month's time.

NMCE was working on the modalities of launching new contracts, Mr Gupta said, adding that the futures trading in these commodities would pick up without any major efforts.

All the four new commodities are grown and traded extensively in Karnataka and Kerala. Karnataka is the largest producer of arecanut and accounts for close to 50 per cent of the country's total annual output of around five lakh tonnes.

Though ginger is predominantly grown in Kerala, the cultivation has picked up in Karnataka off late and is largely confined to the southern districts of the State.

The bold pepper variety again is largely grown in Karnataka, whereas the State was also among the largest grower of maize.

Mr Gupta said about 63 commodities were currently traded on NMCE of which around 20-25 of them were actively traded. NMCE is also considering the launch the south delivery contract of gold. "We are awaiting approval from the Forward Markets Commission for launching the gold futures with Bangalore and Cochin delivery," he added.

Mr Gupta also said though the proposed directive from the Forwards Market Commission to make delivery mandatory would impact the volumes on the exchange, it was good for the futures trading in the long run.

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