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NCDEX Maintains Agri Derivatives Leadership; FY22 ADTV up 47% to Rs. 1,858 Crores

India’s agricultural landscape is witnessing a rapid change with exports crossing the $50 billion mark in the last year. The country being increasingly looked upon as a key sourcing hub for a number of farm products.

Shivam Dwivedi
Arun Raste, Managing Director and Chief Executive Officer, NCDEX
Arun Raste, Managing Director and Chief Executive Officer, NCDEX

National Commodity and Derivatives Exchange Limited maintains its leadership position in the Agri derivatives segment with a market share of 80 percent in this segment. Exhibiting a robust performance in the financial year 2021-22 with an average daily turnover value (ADTV) of Rs. 1,857 crores, 47 percent higher than Rs. 1,261 crores in 2020-21 and also higher than ADTV in the pre-pandemic era 2019-20 of Rs 1,794 crores.

The average daily turnover for FY22 has grown despite the suspension of some top-traded contracts such as Soy complex, Mustard, and Chana among others.

“Our performance in the last financial year shows the resilience in the risk management behaviour of market participants and the agriculture sector in particular, especially when the commodity market is passing through difficult times due to unprecedented geopolitical turmoil,” said Arun Raste, Managing Director and Chief Executive Officer, NCDEX.

The rise in ADTV is backed by a strong increase in the monthly Open Interest to 3,554 crores in 2021-22, which is 32% higher than 2,695 crores posted a year ago. Open Interest is a barometer to gauge the quality and seriousness of market participants.

Among other achievements in 2021-22, NCDEX became the first Indian exchange to enable migration of live trade operations to Yotta platform, the highest globally certified data centre.  On the operations side, the Exchange continued to expand the product basket despite temporary suspensions of some contracts by launching NCDEX GUAREX, the first sectoral commodity index in the country.

“FY 21-22 has been a challenging year for the Agri derivatives ecosystem on account of suspension of some key commodity derivative contracts. But, the fact is that during uncertainty and high volatility value chain participants need the derivatives market even more for risk management and this is evident by increased participation in all commodities,” said Kapil Dev, Chief Business Officer, NCDEX.

In our endeavour to influence the lives of millions of farmers, NCDEX has achieved a milestone by linking over 1-million-farmers to the exchange platform through over 400 Farmer Producer Organisations.

The year ahead comes with a lot of promises to us for being the country’s top agri-derivatives bourse. India’s agricultural landscape is witnessing a rapid change with exports crossing the $50 billion mark in the last year. The country is increasingly looked upon as a key sourcing hub for a number of farm products. This transition will certainly culminate in increased opportunities for the Exchange as a risk management platform.

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