India is predominantly an agrarian economy, ranking second in farm production in the world. The contribution of agriculture to the GVA has decreased from 18.2% in 2014-15 to 16.5% in 2019-20.
While keeping pace with the increasing population, the growing agricultural production over the past several decades has thrown up major challenges in marketing, as well as supply, storage, and distribution. With highly fragmented markets and volatile commodity prices, it is a challenge to ensure a ‘fair’ and ‘remunerative’ price for the Indian farmer. Keeping these in mind, the government introduced several reforms. In all this, the strengthening of existing institutions in spot and derivative trade has become crucial as commodity markets do influence the lives of millions of stakeholders in the country’s diverse and large commodity ecosystem.
There as so many agri-commodities that are available for commodity trading whereas some of them are available on more than one platform. Majorly, KAPAS is the only commodity that is available for trading on both the platforms i.e., NCDEX and MCX.
National Commodity & Derivatives Exchange of India (NCDEX) is a nation-level, technology-driven online commodity Exchange with an independent Board of Directors and professional management. It is committed to providing a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives.
Multi Commodity Exchange of India Ltd (MCX) is an independent commodity exchange based in India. It was established in 2003 and is based in Mumbai. It is India’s largest commodity derivatives exchange. It mainly provides a platform for trading in Bullions, Base metals and Energy.
NCDEX AGRIDEX is India’s first return based agricultural futures Index which tracks the performance of the ten liquid commodities traded on NCDEX platform. The index represents the basket of ten commodities which are selected based on the liquidity on the exchange platform. The NCDEX AGRIDEX serves as a benchmark and one can replicate the performance of the underlying commodities.
AGRIDEX COMPONENTS FOR FY 2020-21
|BASE VALUE||₹ 1000|
|TRADING UNIT||1 LOT (500 UNITS)|
|TICK SIZE||₹ 0.25|
The top 10 commodities that are mentioned on the agridex are the most liquid as they are highly traded on the NCDEX among which commodity includes Dhaniya & Jeera.
The product specifications of the above-mentioned agri-commodities are as under:
|AGRI-COMMODITY||SYMBOL||LOT SIZE (IN MT)||TICK SIZE||P&L||DELIVERY CENTER|
|SOYABEAN||SYBEANIDR||5MT||Rs.2 (per quintal)||Rs.100||INDORE|
|CHANA||CHANA||10MT||Rs.1 (per quintal)||Rs.100||BIKANER|
|MUSTARD SEED||RMSEED||10MT||Rs.1 (per quintal)||Rs.100||JAIPUR|
|GUARSEED||GUARSEED 10||5MT||Rs.1 (per quintal)||Rs.50||JODHPUR|
|GUARGUM||GUARGUM 5||5MT||Rs.1 (per quintal)||Rs.50||JODHPUR|
|CASTOR||CASTOR||5MT||Rs.2 (per quintal)||Rs.100||DEESA|
|COTTON SEED OILCAKE||COCUDAKL||10MT||Re 0.50 (per quintal)||Rs.50||AKOLA|
|REFINED SOY OIL||SYOREF||5MT||Re 0.10 (per 10KG)||Rs. 50||INDORE|
|KAPAS||KAPAS||4MT||Re 0.20 (per 20KG)||Rs. 40||RAJKOT|
|CORIANDER||DHANIYA||5MT||Rs.2 (per quintal)||Rs.100||KOTA|
|JEERA||JEERAUNJHA||3MT||Rs.5 (per quintal)||Rs.150||UNJHA|
|TURMERIC||TMCFGRNZM||5MT||Rs.2 (per quintal)||Rs.100||NIZAMABAD|
NOTE: The expiry of every futures contract is on 20th of the delivery month. If 20th happens to be a holiday, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange, which is not a Saturday.