NCDEX to resume futures trade in four items in September

July 19th, 2008 - 10:03 pm ICT by IANS  

Chennai, July 19 (IANS) The National Commodity and Derivatives Exchange Ltd (NCDEX) will resume futures trade in four banned items - soya oil, potato, channa and rubber - in September, said a top official. “The four-month futures trading ban on these four items issued May 7 this year automatically ceases Sept 6. We would allow futures trade in these four commodities,” R. Ramaseshan, managing director and CEO of NCDEX, told reporters here Saturday.

However he said the earlier ban on food commodities like wheat and rice would stay as it was not restricted to any specific time period.

Asked about the impact of the ban, he said: “The ban has not suffered much owing to trading volume loss. What has actually happened is the dampening of the market owing to uncertainty. People are now guarded in their trading and that resulted in subdued activity.”

NCDEX mainly trades food items. The four non-food items that NCDEX trades are steel, gold, silver and crude oil.

Speaking about the future plans of NCDEX, he said: “We would like to increase the participation in trading through our delivery mechanism. We intend to rope in farmer cooperatives and the user industries to trade in futures. Individual farmers are not in a position to trade owing to low volume of produce.”

NCDEX will hold interactive sessions in major towns and tell the commodity producers and the user industries about the benefits of commodity exchanges.

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