NCDEX to add more non-agro commodities
Jan 17 2013 , Hyderabad
It first launched steel and has recently introduced gold. The others would follow soon, he said adding that steel has seen an open interest of about 60,000 tonne and with tweaking of guidelines now only steel that matches BIS specifications alone is allowed. The demand for steel has been fueled by the presence of secondary markets, he said.
On Thursday, NCDEX launched Gold 100 gm contract, offering delivery in Hyderabad and Chennai. The contract, is based on gold bars of 100 gram with 999 fineness and price quotes in rupees, is a compulsory delivery contract from exchange approved refiners, he said adding the entry and exit type contract is a hedge option.
India is the largest market for gold jewellery in the world and is a key driver of global gold demand, which is not necessarily linked to global economic trends. With in India, a two-thirds of the demand mainly came form the rural areas and south India accounted for 45 per cent of the nation’s demand and about 60 per cent of the gold. With Hyderabad accounting for 40 per cent of this, there was need to facilitate delivery, he said in Hyderabad.
The annual demand for gold in India has been about 745 tonne or about 20 per cent of the world’s gold demand. In 2011, 969 tonne gold was imported.
Meanwhile, Ramesh Chand HC, executive vice-president (south), NCDEX, it is ready with models for automating auctions at various mandis. It has completed the first leg of modernisation in Karnataka and it would now integrate the mandis in a month. This would enable the farmers get better prices and also improve post harvest operations.
Maharashtra, Tamil Nadu, Andhra Pradesh and Chattisgarh too are showing an interest in the automation to replace open outcry method of fixing the prices to e-auctions, he said.
NCDEX will launch e-auctions for mango at Srinivasapura market in Karnataka, among the big fruit markets. “It is a challenge for us. This is the first time that an exchange has taken up a commodity that is highly perishable,” he said adding that about 45,000 tonne mango is expected to arrive at the market. The independent assaying agency that will come into place will eliminate high commissions charged now.