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Commodity exchange to introduce 15 products in spot market

Saturday, August 08, 2009 (16:28:51) Tags: business, agriculture, commodities, NCDEX Kolkata: National Commodity and Derivatives Exchange Ltd (NCDEX) is planning to introduce 15 agricultural commodities that are currently being traded in the futures in the spot market, a top official said here today. "In the futures we have around 52 commodities out of which 15 are very active. We will try to get all the 15 into spot," R. Ramaseshan, managing director and CEO of the exchange, told reporters here. It is planning to introduce all the 15 agricultural commodities in the spot market by next fiscal-end (2010-11), he said. At present, the exchange has spot contracts in chana with delivery centres at Bikaner and Indore and in mustard with delivery centre at Sri Ganganagar. NCDEX plans to introduce maize contract by October-December. "The maize contracts would be launched in the Rabi season. The crop is a three-state phenomenon grown in Bihar, Andhra Pradesh and Karnataka and we plan to launch contracts for these varieties," Ramaseshan said. "Spot market is an inherent part of the reform in the agriculture marketing but we are facing lot of challenges in popularising the spot market and we have long way to go," he said. Regarding the recent move by sugar processor Shree Renuka Sugars to acquire 5 percent stake in NCDEX, he said: "As per the government norms, foreign enterprises cannot hold more than 5 percent in the exchange and that is the reason Goldman Sachs (7 percent) and IntercontinentalExchange (8 percent) have divested their stakes." Shree Renuka is acquiring the shares these two foreign firms divest. The present shareholders of NCDEX are Life Insurance Corp, National Stock Exchange, National Bank for Agriculture and Rural Development, Crisil, Indian Farmers Fertiliser Cooperative (IFFCO), Canara Bank and Punjab National Bank.(IANS)