Plans to invest Rs 12-15 crore

Our Bureau

Kochi, Aug. 22

NCDEX plans to invest Rs 12-15 crore to set up electronic spot exchanges acrorss the country, Mr P.H. Ravikumar, Managing Director and CEO of NCDEX told reporters here on Tuesday.

Efficient value chain

He said NCDEX proposed to start the trading in October-November this year.

Mr Ravikumar, who was here in connection with a seminar on opportunities in commodities futures jointly organised by NCDEX and Infarm Agro Movement, said agricultural commodities to be taken up for spot trading in Rajasthan were mustard, pulses and guarseed, whereas in West Bengal it would be jute, potatoes and rice.

The exchange would gradually extend spot trading to other agricultural commodities such as cotton, all spices, coffee and cashew, he added.

Spot prices on the electronic exchange platform would reflect the fundamentals of demand and supply.

Hence, transparency would be assured in arriving at the final settlement price for settlement of futures contracts, he said.

Remunerative to farmers

The trading will bring down the number of intermediaries and help farmers realise remunerative price for their produce.

Earlier, speaking at the awareness programme, the Chairman of the Infarm Agro Movement, Fr Mathew Vadakkemuriyil said that commodity exchanges should come close to farmers in a bid to spread awareness about the benefits of futures trading in commodities. Farmers have an apprehension on the futures market as they were of the view that prices are being manipulated, he said.

In futures, Infarm wanted the farmers should derive benefits from commodity exchanges. They need to be educated about the advantages of these exchanges, he added.

(This article was published in the Business Line print edition dated August 23, 2006)
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