The Hindu Business Line : NCDEX starts sugar spot trading on electronic platform

Mumbai, Dec 13 Spot trading in commodities on the electronic platform had a sweet beginning on Thursday with NCDEX Spot Exchange launching the country’s first trade in sugar (S30 Grade) on a pilot basis in Maharashtra.

To begin with, Sangli-based Rajaram Bapu Patil Sahakari Sakhar Karkhana Ltd with a capacity of 10,000 tonnes per day will be the only seller and 50-registered members will channel buyer quotes. Over 25 more members have evinced interest in taking up the membership.

“Apart from meeting other criteria, a member has to set aside Rs 5 lakh interest-free deposit as membership fee. Buyers have to pay upfront for the purchases made. And, a transaction fee of Rs 2 per 100 kg bag will be levied,” said Mr Mukund Annigiri, CEO, NCDEX Spot Exchange Ltd.

All trades on the spot exchange will result in compulsory delivery. In the pilot phase, deliveries will be ex-factory.

The online spot market will be open from 11 am to 3 pm from Monday through Friday and between 11 am and 1 pm on Saturday.

“The pilot-project does not allow a buyer to sell back on the platform. The option of netting is also not allowed,” said Mr Annigiri.

The exchange plans to rope in more sugar companies shortly..

More agricultural commodities will be added for trading in the next few months, subject to necessary approvals from state governments, he said.

More Stories on : Commodity Exchanges | E-Commerce & E-Business

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Icrisat, trust set up $10-m fund

NCDEX starts sugar spot trading on electronic platform

Tuna fishing: 22 long liner vessels flagged off from Vizag

Captive catch

Cocoa prices stay steady

Award for rubber producers’ society

Mixed trend in spot rubber

Coonoor tea volumes continue to be low

Winter sales boost TN layer sector

Commerce Dept leaves basmati rice definition to Agri Ministry