Indore: ‘Agridex’, the country’s first tradable Agri future index includes 4 out of 10 commodities, which are predominantly grown in the region. The farmers of the region are likely to get better prices now.
Agridex, launched on Tuesday, is promoted by National Commodity and Derivatives Exchange Limited (NCDEX). It has generated enthusiasm and interest among the market participants by registering an impressive growth in trade value and quantity over its launch day. The Index registered Rs 24 crore trade value on the second day of its trade on Wednesday.
Agridex traded 418 lots, Rs 21 crore volume on first day.
The cash-settled agri index has 10 leading liquid contracts such as soybean, chana, coriander, cottonseed oil cake, guargum, guar seed, mustard seed, refined soy oil, castor seed and jeera. The value of this index is generated based on the spot and futures of the underlying commodities.
The advantage of having this Agridex is that traders, producers, farmers producers organisation (FPO)s, individual farmers, institutional participants and corporate can hedge their risk in agricultural commodities. Earlier, the focus of the government was on supply. With India having achieved self-sufficiency in most commodities, the focus is now to have marketing tool.
Agridex represents produce grown in India and is not linked to any external benchmark; it will be available initially for trading of contracts expiring in June, July, September and December
Talking to Free Press, Kapil Dev, Executive Vice-President and & Head-Business, NCDEX said, though the commodities included in the index are not region specific, but 5 commodities out of 10 are those which are predominantly grown in MP. These are Chana, soyabean, refined soya oil, Coriander and mustard. He expressed hope that price movements of the commoditise will help in realizing better prices to the farmers of the state.
It’s really encouraging to see the response that we received on AGRIDEX and it has further strengthened our belief that this will enable more participation from retail and institutional players in the agri commodity space.”