Calcutta, Aug. 5: Futures trading in gunny bags is likely to begin on the National Multi-Commodity Exchange (NMCE) from next year.

NMCE offers a basket of 60 commodities, including raw jute and gunny bags, for online trading on the Ahmedabad-based exchange.

Futures trading in raw jute, which was started in June 2004, accounted for a turnover of about Rs 8,500 crore in the past year. This was 30 per cent of the gross trading of Rs 28,000 crore in all commodities.

NMCE managing director Kailash Gupta is hopeful that gunny trading on the exchange might take off from next year once the delivery of raw jute improves.

Physical delivery of raw jute is just about 1 per cent, giving rise to more speculative trading, Gupta said. While there are three city-based registered traders in raw jute, there were about 45 clients all over the country actively participating in trading.

Raw jute prices this year are ruling much higher than the minimum support prices announced by the government. Market price for representative grade raw jute TD-4, ex-Assam, is ruling around Rs 1,400 per quintal against the government announced MSP of Rs 890 per quintal.

The government has asked the Jute Corporation of India to go in for more commercial purchase operations for survival.