MUMBAI, 15 July 2021: Retaining its leadership position in the agri-derivatives space, National Commodity and Derivatives Exchange Ltd (NCDEX) has recorded an all-round increase in its performance in June 2021. 

The Average Daily Turnover Value (ADTV) has increased 126 percent year-on-year to INR 1,945 crore in June taking the exchange’s market share in the country’s agri-derivatives segment to 74 percent during the month under review.

“Continued trade disruptions notwithstanding, the Exchange has once again rose to the occasion and posted a strong performance in June helping a number of agri value chain participants to effectively manage their price and raw material risks through the exchange platform,” NCDEX managing director and CEO Arun Raste said.

The key highlight in June is that the Refined Soy Oil contract was crowned as India’s top agri-derivative contract for the 10 successive month. The contract posted an ADTV of INR 653 crore in June 2021, up 267 percent from INR 178 crore posted in June 2020.

The ADTV in Mustard rose 135 percent y-o-y to INR 326 Crore and the same in Chana increased 129 percent to INR 277 Crore. Soybean contract posted an ADTV of INR 199 Crore, up 93 percent year-on-year.

The Open Interest as on June-end has gone up 57 percent year-on-year to 652,232 tonnes worth INR 3,884 Crore compared to 416,294 tonnes worth INR 1,781 Crore as on June 30, 2020.

Deposits of various commodities in the exchange warehouses have also swelled to above 263,500 tonnes by the end of June 2021, up 91 percent from the corresponding period a year ago. The delivery volume in June 2021 reached close to 46,000 tonnes, up 41 percent from June 2020.

“The increase in trading volume and deliveries underlines the importance of agri-derivatives market as a place to manage price as well as raw material risks during trade disruptions. With Kharif plantations peaking this month, the exchange is ready to serve farmers and Farmer Producer Organisations (FPOs) to enable them to lock-in price of their harvests,” NCDEX Chief - Business & Products Kapil Dev said.

In June 2020, NCDEX had posted an ADTV of Rs. 860 Crore and agri-derivatives market share of 70 percent as disruptions in trading activity during the first wave of Covid-19 outbreak had hit financial and commodity markets.