NCDEX seeks Sebi nod for relaunch of tur, chana, urad contracts
New Delhi: The National Commodity & Derivatives Exchange Ltd (NCDEX) has sought capital market regulator Sebi’s approval for relaunch of chana, urad and tur contracts on commodity exchanges.
Tur and urad futures were banned in January 2007 owing to price volatility and irregularities, while chana was suspended last year after prices soared.
"Farmers are asking for more commodities like tur and urad, which were on the platform but banned in 2007. They are asking for yellow peas too,” said Samir Shah, managing director NCDEX. “Virtually, they are screaming for pulses because prices have crashed below the minimum support price. They need market support.”
Shah said farmers have written to the Prime Minister’s Office and Securities and Exchange Board of India (Sebi) to allow exchanges to relaunch tur, urad and chana as well as yellow peas. Shah was speaking on the sidelines of a CII and NCDEX conference to discuss benefits of connecting farmers with regulated markets.
With pulses production projected to touch 22.14 million tonnes this year, up by over 35.41% in the previous year, prices have gone below the MSP. Connecting farmers through local organisations to do future trading would help them get an indication of prices, Shah said.
“I think they (government) are more open (regarding pulses futures) compared to two years ago,” Shah said, adding that initially, chana may be allowed followed by others.
On options trading, Shah said Sebi is yet to issue guidelines. "There are some legal issues. It (Sebi) will release after sorting them out. In agriculture, most likely we will be recommending soyabean. We are ready to launch options in soyabean," he said.
Till February, 26,400 farmers had participated on NCDEX. “It could reach 30,000 and may even go up to 1.5-2 lakh by end of next year,” said Shah.
Tur and urad futures were banned in January 2007 owing to price volatility and irregularities, while chana was suspended last year after prices soared.
"Farmers are asking for more commodities like tur and urad, which were on the platform but banned in 2007. They are asking for yellow peas too,” said Samir Shah, managing director NCDEX. “Virtually, they are screaming for pulses because prices have crashed below the minimum support price. They need market support.”
Shah said farmers have written to the Prime Minister’s Office and Securities and Exchange Board of India (Sebi) to allow exchanges to relaunch tur, urad and chana as well as yellow peas. Shah was speaking on the sidelines of a CII and NCDEX conference to discuss benefits of connecting farmers with regulated markets.
With pulses production projected to touch 22.14 million tonnes this year, up by over 35.41% in the previous year, prices have gone below the MSP. Connecting farmers through local organisations to do future trading would help them get an indication of prices, Shah said.
“I think they (government) are more open (regarding pulses futures) compared to two years ago,” Shah said, adding that initially, chana may be allowed followed by others.
On options trading, Shah said Sebi is yet to issue guidelines. "There are some legal issues. It (Sebi) will release after sorting them out. In agriculture, most likely we will be recommending soyabean. We are ready to launch options in soyabean," he said.
Till February, 26,400 farmers had participated on NCDEX. “It could reach 30,000 and may even go up to 1.5-2 lakh by end of next year,” said Shah.
