Agri-commodity exchange: NCDEX average daily turnover surges over 2-folds to Rs 2,151 cr in July

The National Commodity and Derivatives Exchange on Thursday said its average daily turnover value (ADTV) surged by more than two-folds to Rs 2,151 crore in July compared to the same month of the previous year.

The agri-commodity exchange's ADTV stood at Rs 785 crore during July 2020, NCDEX said in a statement.

Similarly, NCDEX witnessed a 79 per cent increase in the agri-derivatives market share from 70 per cent in the same month a year ago.

Refined SoyOil maintained its number one position in the country's agri-derivatives segment recording an ADTV of Rs 560 crore, up 218 per cent from Rs 176 crore in July 2020.

"Our performance in July is an outcome of our consistent efforts of providing the necessary risk management products across the agri value chain that help physical market participants to mitigate their price risks in an extremely volatile market environment," NCDEX Managing Director and Chief Executive Officer Arun Raste said.

The ADTV in Mustard contract has increased to Rs 382 crore in July, while the same in Soybean was up at Rs 337 crore.

Chana derivatives posted a 221 per cent increase in ADTV to Rs 308 crore while the same in Cottonseed Oilcake increased 62 per cent to Rs 157 crore in the month under review.

Meanwhile, the exchange said that it delivered 63,296 tonnes of commodities in July 2021 as against 37,642 tonnes in the corresponding month a year ago, while warehouse stocks as of July end were at 250,833 tonnes, up 72 per cent from the last year.

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"We remain committed to offer user-friendly products that have been engineered to serve across segments. In this direction we will soon introduce sectoral indices to complement our composite index AGRIDEX, already being looked upon as the most convenient tool to participate in the agri derivatives segment," Raste noted.

In the non-agri segment, the Steel futures contract has started gaining momentum as reflected in the first deposit and delivery of the metal in July, he added.

"The year-on-year growth in our trading volume in July emphasises the importance of a robust risk management and trading platform like NCDEX that has been enabling farmers and other value chain participants to hedge their price risks.

"We will continue to focus on agri as well as non-agri derivative products contributing towards the overall growth and development of the Indian economy in the wake of a dynamic global commodities market," NCDEX Chief - Business and Products, Kapil Dev said.