On pipeline

Calcutta, July 16: The National Commodity and Derivatives Exchange (NCDEX) has revived its talks with GAIL (India) Ltd to start delivery-based trading in natural gas. The exchange has also got the approval of the Forward Markets Commission to start futures trading in polymer products.

“While trading futures contracts in polymers may start in the next one month, trading in natural gas will take some time,” said Rahul Banerjee, an NCDEX official supervising the energy trade. “We are hopeful that trading in natural gas could be started in three months from now,” Banerjee added.

However, trading in Brent crude futures, which the exchange launched last September in association with the Inter Continental Exchange in London, did not pick up sufficiently. “The daily turnover in Brent crude futures on NCDEX is between Rs 45 crore and Rs 50 crore,” Banerjee said, adding that there has been little participation from the corporate sector. Under the tie-up with ICE Futures, the settlement price and the settlement period for Brent futures on NCDEX are the same as on ICE.

“Almost the total trade in Brent crude futures on NCDEX as of now is done by retail investors,” he added. Even on the Multi Commodity Exchange, trading in Brent crude futures remain subdued at around Rs 100 crore a day.

In agricultural commodities, NCDEX recently introduced futures trading in potatoes. “We have also got the approval to start the same in onions, which will be introduced soon,” Banerjee said.

Besides, the exchange is planning to introduce a spot market for agricultural commodities, particularly in foodgrains and pulses. “We have already installed electronic tickers at local mandis and post offices in 500 places across the country. These tickers will display prices of agricultural commodities in the local language, weather report and bank lending rates for the agricultural sector,” said another NCDEX official.