The Hindu Business Line : NCDEX arm to roll out spot market in Oct-Nov

Mr P.H. Ravikumar, Managing Director and CEO of National Commodity and Derivatives Exchange (NCDEX), on Friday said the spot market promoted through a group company would be rolled out in West Bengal and Rajasthan in October-November.

Talking to newspersons at the Bengal Chamber of Commerce and Industry here, he said since there was no umbrella regulator covering the spot as well as futures market, NCDEX could not promote the project on its own.

Meanwhile, National Collateral Management Services Ltd - a NCDEX subsidiary - had been recently appointed by Food Corporation of India Ltd for procurement of rice at minimum support price in Bihar and Uttar Pradesh. The company is yet to complete its procurement assessment study in the two States.

The order (for Bihar and UP) came after successful procurement of 60,000 tonnes rice from 45,000 farmers in Orissa and Madhya Pradesh without involving the intermediaries.

"This is the first time farmers in these two states had received minimum support price," Mr Ravikumar said. On the recent rise in wheat prices and the alleged role of commodity future markets, Mr Ravikumar said such allegations were "thoroughly unjustified".

`Unjustified controversy'

Wheat prices are increasing primarily due to demand-supply mismatch, he said, adding that wheat production was almost stagnant at 66-68 mt for the last six years. "Not a single wheat variety was added since 1992". On the contrary supply is ever rising due to population growth and change in demand pattern.

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