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NCDEX agri-derivatives segment market share crosses 80% in April

Kolkata: National Commodity and Derivatives Exchange Ltd (NCDEX) has posted an all-round increase in agri-derivatives segment in April 2021 with market share crossing 80% during the month, release issued by the exchange on Tuesday said.

The Average Daily Turnover (ADT) of the exchange went up more than four-fold to Rs 2,905 crores in April 2021 from Rs. 698 crores in the same month a year ago. The average Open Interest too registered a sharp increase of 92.13% year-on-year to 876,600 tonne. The exchange delivered 44,646 tonnes of commodities in April 2021, an increase of 43.58% year-on-year.

Refined Soy Oil, RM Seed, Chana, Soybean and Cotton Seed Oilcake were the top-traded derivatives contracts during the month under review. The ADT value in Refined Soy Oil was Rs. 685 crores, making it the country’s top-traded agri-derivative contract in April 2021, while for RM Seed the ADT was at Rs. 551 crores. Contracts in Chana, Soybean and Cotton Seed Oilcake posted the ADTV of Rs. 506 crores, Rs. 474 crores and Rs. 246 crores, respectively, during the month.

ADT in the evening session has topped Rs 200 crore in April 2021, indicating an enhanced alignment of internationally referenceable commodities such as Refined Soy Oil, Kapas and Steel with the global market.

“Agri-derivatives markets are primarily for risk management by farmers, processors and traders. An astounding growth in our volumes since last few months and April in particular indicates that agri value chain participants have been using the NCDEX platform more aggressively for hedging during the extremely volatile agri-commodity market,” said Mr. Kapil Dev, Chief – Business & Products. More importantly, the multi-fold rise in the volume is a reflection of a tremendous trust shown by the market participants despite various challenges being raised by the resurgence of the Virus, Mr. Kapil Dev said.


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