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Snapshot of activities
Sr. no Activities Details
1 NCDEX introduces “Adopt a Mandi” program
for community engagement
Issued on 31st December,
2014
2 Traded volume of forward contracts at
NCDEX tops 4,800 tonnes
Issued on 3rd January, 2015
3 AP Govt. starts procurement of Sugar
through NeML e-Auction Market (NAM)
Issued on 17th January,
2015
4 CII & NCDEX issued white paper on a
Warehouse Receipt Transactions Registry
Issued on 23rd January,
2015
NCDEX- Press Release: NCDEX introduces “Adopt a Mandi” program for community
engagement
Sr. No Date Publication Headline Edition
1 01.01.15 Amar Ujala NCDEX introduces “Adopt a
Mandi” program for
community engagement
New Delhi
2
03.01.15
Prabhat NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
3
03.01.15
Herald
YoungLeader
NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
4 03.01.15 Suryakaal NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
5 03.01.15 Gujarat Pranam NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
6 03.01.15 Divya Gujarat NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
7 03.01.15 Chakde Gujarat NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
8 03.01.15 Mahanagar
Metro
NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
9 03.01.15 Marwad Mitra NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
10
05.01.15
Standard Herald NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
11 05.01.15 Metro Herald NCDEX introduces “Adopt a Ahmedabad
Mandi” program for
community engagement
12
06.01.15
Suryakaal NCDEX introduces “Adopt a
Mandi” program for
community engagement
Ahmedabad
NCDEX- Press Release: Traded volume of forward contracts at NCDEX tops 4,800
tonnes
Wire
Traded volume of forward contracts at NCDEX tops 4,800 tonnes
Leading commodity exchange National Commodity and Derivatives Exchange
(NCDEX) has registered a traded volume of 4,856 tonne in forward contracts and a
traded value of Rs 8.18 crore since its launch.
NCDEX had launched forward contracts in September 2014, the commodity
exchange said in a release.
The commodity delivered through the exchange platform in forward segment was
3,385.32 tonne till December 31, 2014.
"For trading in forwards segment of the exchange, already 12 farmers producer
organisations (FPOs) have registered with us as members, 25 FPOs are in process to
obtain membership of the Exchange.
"In the forwards segment out of newly launched 17 commodities, Jeera and Castor
have already started trading successfully on the platform," NCDEX Managing
Director and CEO Samir Shah said.
During December 2014, the Forwards segment registered a trade volume of 1,546
tonnes on the exchange, with traded value of Rs 3. 22 crore.
During the month 236.50 tonnes of commodities were delivered through the
exchange platform.
Sr. No Date Wire Headline
1 04.01.15 PTI Traded volume of forward contracts at NCDEX tops
4,800 tonnes
In the futures segment of the exchange, the average open interest for December
2014, was Rs 6,581.78 crore.
The average daily trading volume (ADTV) for the month was Rs 3,672. 32 crore and
1,04,979 tonnes of commodities were delivered through futures segment during
the month.
For the agri commodity futures segment, the monthly total volume was Rs
78,896.84 crore.
The top three traded commodities were castor seed, refined soya oil and chana.
The total traded value for castor seed was Rs 19,971.52 crore with a fall of over
30% year-on-year, chana was Rs 10,448.5 crore with over 2% year-on-year rise and
for refined soya oil was Rs 10,858.53 crore with a fall of over 40% fall.
Guar seed saw an excellent participation with 10 tonnes and clocking a value of Rs
8,123.95 crore, a growth of 504.33% year-on-year.
As a leading online exchange, NCDEX offers the widest range of benchmark
products across agriculture, metals and precious metals.
Sr. No Date Publication Headline
1
05.01.12
Financial
Chronicle (Smart
Byte)
Smart bytes
2 The Economic
Times
Forward Contracts on NCDEX Cross 4,800
T
3 Financial
Chronicle
Traded volume of forward contracts at
NCDEX tops 4,800 tonnes
NCDEX- Press Release: AP Govt. starts procurement of Sugar through NeML
eAuction Market (NAM)
Sr. No Date Publication Headline Edition
1
19.01.15
The Hindu
Business Line
NCDEX e-arm procures 7,000
tonnes sugar for AP
All
2 Alpviram AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
3 Lokmitra AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
4 Chakde Gujarat AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
5 Prabhat AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
6 Gujarat Pranam AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
7 Mahanagar
Metro
AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
8
20.01.15
Herald
YoungLeader
AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
9 Standard Herald AP Govt. starts procurement of
Sugar through NeML eAuction
Market (NAM)
Ahmedabad
NCDEX- Press Release: CII & NCDEX issued white paper on a Warehouse Receipt
Transactions Registry
Wire
NCDEX to launch forward trade in seven commodities from Feb 2
Mumbai, Jan 23 (PTI) NCDEX today said it plans to launch forward contracts in seven
additional commodities, including some pulses, at fixed price from February 2.
"We have got approval from the regulator for launching seven forward contracts at
fixed price early this month. We will launch the forward contracts of urad, tur,
yellow peas, yellow soyabean meal (domestic), pepper, RBD palmolein and bajra
from February 2," NCDEX Managing Director and CEO Samir Shah told reporters
here at a conference on `Agri Supply Chain 2015' organised by the CII.
Currently NCDEX has 19 forward contracts in a combination of fixed as well as
reference prices. It launched trading in forward contracts last September.
A forward contract is an agreement between two parties to buy or sell an asset or a
commodity of specified quantity and quality at a future date on a mutually agreed
delivery price. It is different from a spot contract or a futures contract.
"Warehouse financing is a crucial enabler in the holistic development of the
agricultural markets in India and there is a perceived trust deficit that the banks
have as far as the sector goes," Shah said on this occasion.
Electronic registry, which provides transparency and tracking of commodities in
every single warehouse in the country, will go a long way in giving comfort to the
banks and can be the single biggest game-changer for the industry, he said.
"This is in line with the development in the Indian capital market, which has
witnessed several initiatives that have helped in bringing transparency to the trade
and building confidence among the participants," he added.
Sr. No Date Wire Headline
1 23.01.15 PTI CII & NCDEX issued white paper on a Warehouse
Receipt Transactions Registry
Sr. No Date Publication Headline Edition
1 24.01.15 The Hindu
Business Line
NCDEX moots electronic registry for
warehouse receipts
All
2
27.01.15
Prabhat CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
3 Marwad Mitra CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
4 Mahanagar
Metro
CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
5 Gujarat Vaibhav CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
6
28.01.15
Alpviram CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
7 Herald
YoungLeader
CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
8 Standard Herald CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
9 30.01.15 Metro Herald CII & NCDEX issued white paper on a
Warehouse Receipt Transactions
Registry
Ahmedabad
Publication: The Economic Times
Date : January 23, 2015
Headline: ‘Delivery- based Transactions key to Curbing Price Manipulation in Commexes’
Publication: Business Line
Date : January 28, 2015
Headline: Karnataka shows the way on unified national agri market
Karnataka shows the way on unified
national agri market
ENAMUL HAQUE/ANU PETER
MS JAIRATH
The single market platform integrates 51 markets and aims at covering all the 155 main
market yards
January 28, 2015:
Owing to changing agricultural marketing environment, establishing a national market for
agricultural and horticultural produce is one of the focus areas of the government.
Absence of uniform regulations in States for the Agricultural Produce Marketing Committee
(APMC) Act and lack of similar taxation system are considered to be major hurdles in
establishing a common market.
Indicating that the popular GST (Goods and Service Tax) will be implemented, the
government is set to achieve market integration across the country. GST will play an
important role in unifying the markets across the nation.
It is also expected that this will boost trade among States. However, trading in agriculture and
horticulture produce could get excluded if States do not come forward to create a facilitating
environment..
Strategy of Karnataka
At a time when many States have not been able to reform their APMC Acts, Karnataka has
taken initiatives that were not conceptualised even under the model Act. The focus of the
Karnataka Government has always been on improving the regulation, enhancing the
efficiency of market, promotion of processing, export and facilitating infrastructure for
agriculture and horticulture.
The State has also set an example in formulating and practicing one of the best governance
systems in agricultural marketing.
Major initiatives
One of the major initiatives taken by Karnataka to implement market reforms in the
agricultural marketing sector is establishment of Rashtriya e-Market Services Limited
(ReMS), a joint venture of Karnataka Government and NCDEX Spot Exchange Limited.
It was the Agricultural Marketing Reforms Committee 2013, headed by Manoj Rajan,
Additional Secretary (Market Reforms), Government of Karnataka, who emphasised the
importance of leveraging technology in agricultural marketing system.
Accordingly, with the establishment of ReMS the State has set an example of market
integration.
The ReMS claims to offer complete technology and management solution for modernising
markets in state and operating the markets at a par with international practices.
The unified market platform has integrated some 51 markets so far.
It aims at covering all the155 main market yards as well as 354 sub-yards.
From the day of its launch (February 22, 2014), 7.5 lakh lots of trading has been done on the
platform with 45 lakh bids being made.
Transactions on the platform are worth ₹15,000 crore.
It has accommodated lakhs of farmers, 31,473 traders and 17,149 commission agents for all
the 92 regulated commodities.
Range of services
The services offered on ReMS are beyond imagination for most of the APMCs in the country.
ReMS offers automated auction and post auction process (weighing, invoicing, market fee
collection, accounting, payment of sale proceeds directly to farmers), assaying facilities in
markets, facilitate warehouse-based sale of produce, facilitate commodity funding to benefit
all stakeholders, price dissemination, secondary market development and capacity building
for stakeholders.
Reaping the benefits
Some of the major benefits of the platform are: single licensing system, increased
competition, easy and fast trading, better price discovery, etc.
Under this new initiative, traders are allowed to participate in auctioning at all APMCs in the
State with a single licence.
Participants such as businessmen, traders, millers, etc. from other States as well are allowed
to participate in online auctions.
This has resulted in better price discovery which is determined by considering demand and
supply equation not only of Karnataka but also in other States.
The other benefits which are reaped through this unique initiative are increased arrival of
commodities (diversion of trade from open market to APMCs), real time monitoring of prices
across the State, transparency in operations such as weighing, pricing, billing, etc. and better
quality maintenance of the produce.
The platform also facilitates users to track the integrated markets of specific commodities.
For example, an user can access the information about Tur (Arhar) in the markets of Raichur,
Gulbarga, Chitradurga and Tumkur online.
In the next phase of its reform, the State is looking forward to establish a system of transfer
of money to the accounts of farmers directly.
Lesson for other states
The ReMS is capable of accommodating large number of transactions. Other States can also
reform their agricultural marketing framework to become a part of this revolutionary step. In
anticipation of implementation of GST, States have to initiate to unify the market which later
can be integrated into national market.
The writers are associated with National Institute of Agricultural Marketing, Jaipur. Views
are personal.
(This article was published on January 28, 2015)
Publication: The Economics Times (Blogs)
Date : January 7, 2015
Headline: Why government should not see gold as a burden
Why government should not see gold as a burden January 7, 2015, 3:01 PM IST Nidhi Nath Srinivas in Something Fresh | Economy, India | ET
India is burdened by its love for gold. Our position as the one of world’s top gold consumers
has become a cross round our neck. But need it be so? Not if China’s success is any indicator.
China has single-handedly tilted the balance of power in world gold market from West to
East.
China is the most important player in the world gold market. It accumulates gold for its
monetary value and in anticipation of a new monetary system. In 2013, China emerged as the
world’s largest producer and consumer of gold. In 2014, it effectively sealed this dominance
with a unique mix of market-savvy strategies.
The first one was to encourage its people to start holding gold. In 1950, communist China
prohibited private ownership of bullion and put the gold industry under state control. Fifty
years later the People’s Bank of China abandoned its monopoly on the purchase, allocation
and pricing of gold. In 2004, for the first time since 1950, private persons were permitted to
own and trade gold.
Gold demand in China could not have flourished as it has without the blessing of the
authorities. The World Gold Council’s recent report, China Gold Market: Progress and
Prospects, says, “China’s leaders regard the public’s gold holdings as part of the nation’s
reserves that could be called upon in an emergency”.
China should accumulate 8,500 tonnes in official gold reserves, more than the US, according
to Song Xin, President of the China Gold Association, General Manager of the China
National Gold Group Corporation and Party Secretary. Investment in gold has benefited also
from the limited selection of alternative forms of savings in China. Today China is the
world’s largest market for gold bars.
This demand will only accelerate in future. And it will be a fundamental factor supporting the
flow of gold from West to East.
The second aspect of the strategy is to consolidate its pole position as largest producer of gold
in the world. Gold’s big three (South Africa, the United States, and Australia) were the big
three for a long time. In 2007, China overtook them. Gold production over the last decade has
more than doubled. Interestingly, the major source of China’s big increase in production is
thousands of new smaller-scale mines. With labour and materials cheap, coupled with a
generally lax regulatory system, it’s not too difficult to develop a mining operation.
Foreign expansion will be a growing priority for Chinese mining companies. Australia, Peru,
Canada, Colombia and the United States are all attractive destinations for investment.
Growing political ties between China and Africa will also spur the development of projects in
Ghana and Congo. China’s central bank recently circulated a draft plan to ease restrictions on
gold imports by local miners.
The third strategy is the internationalization of its gold market. Until recently, China’s gold
market was closed. Now Chinese regulators are pushing to open up the country’s gold trade
and lure foreign investors as part of its broader effort to link the mainland to global markets.
In September, it began offering international institutions access to yuan-denominated gold
contracts in Shanghai’s free-trade zone through the International Board of SGE. The core
business of the SGEI is to facilitate offshore gold trading in RMB. International customers
can only deposit and withdrawal gold into and from IB Certified Vaults. This way
international banks or investors trading IB physical products cannot drain physical gold from
China mainland.
The first transactions were put through by a diverse group comprising HSBC, MKS
(Switzerland), and the Chinese banks, ICBC, Bank of China and Bank of Communications.
MKS is the Geneva headquartered precious metals trading group that also owns the large
PAMP refinery in Switzerland. International bullion banks who have already announced their
participation include ANZ, Standard Chartered and HSBC.
The presence of international refineries within SGEI trading should help it become a serious
competitor to the gold price discovery in the London and New York markets. Since there is a
lot of physical gold flowing through the exchange, price discovery is not just based on mostly
unallocated gold as in London or paper gold as in New York.
There is also a larger game plan here. The world price of gold is dollar-priced and fluctuates
with the US dollar. With the shaky status of the US dollar as the international reserve
currency, China wants a new global currency setup. China has established a free trade yuan-
denominated spot gold trading platform and a corresponding settlement system to increase
China’s influence over global bullion prices.
The fourth, and related, development has been the closer relationship between Hong Kong,
Singapore, and Shanghai gold markets. The Hong Kong-based Chinese Gold and Silver
Society recently announced that they plan to build a massive new precious metals vault in
Qianhai in Shenzhen. Its real purpose is to support a CGSE gold trading platform in
Shenzhen and allow this new Shenzhen gold exchange to link up with the Shanghai Gold
Exchange. Singapore has also introduced a physical gold contract this year in tandem with
SGE, highlighting a push in the biggest consuming region to establish new price benchmarks
as demand shifts east.
In the past, the world’s gold supply was channeled through London. Now a majority of
refiners are in Switzerland and they are increasingly producing the 1 kg bar destined for Asia.
With China opening up gold importing to bullion banks to channel gold directly to Shanghai,
the supply through London is falling. So the ability of London to reflect a price that accounts
for the bulk of global demand/supply is diminishing. Soon global gold suppliers and buyers
will flock to do business in Shanghai rather than in London. In short, China is purposefully
changing the structure of the world gold market.
China’s moves show that some governments believe gold will return to its role as an
international currency. That gold can fill the vacuum created by the flailing ruble, dollar and
the euro. India, as the other engine of the demand pull from the East, can equally easily take
advantage of this shift. But that will only happen when we stop seeing gold as a burden, or as
merely raw material for the jewellery sector, and fit it into our broader strategic and financial
imperatives.
Publication: Nafa Nuksan
Date : January 30, 2015
Headline: Exchange Traded Forwards: Multiple Options of Delivery
Publication: Agro One Sakal
Date : January 24, 2015
Headline: Exchange Traded Forwards: Multiple Options of Delivery
Publication: Agro One Sakal
Date : January 22, 2015
Headline: Exchange Traded Forwards: Flexible Quality Norms & Assured Quality
Publication: Business Line & Business Standard
Date : January 21, 2015
Headline: Exchange Traded Forwards: Streamlined Settlement
Publication: Sanmarg
Date : January 29, 2015
Headline: Exchange Traded Forwards: Multiple Options of Delivery
Publication: Sanmarg
Date : January 22, 2015
Headline: Exchange Traded Forwards: Flexible Quality Norms & Assured Quality
Publication: Nafa Nuksan
Date : January 20, 2015
Headline: Exchange Traded Forwards: Flexible Quality Norms & Assured Quality
Publication: Agro One Sakal
Date : January 22, 2015
Headline: Exchange Traded Forwards: Flexible Quality Norms & Assured Quality
Publication: Nav Gujarat Samay
Date : January 17, 2015
Headline: Exchange Traded Forwards: Traditional v/s ETF
Publication: Nav Gujarat Samay
Date : January 13, 2015
Headline: Exchange Traded Forwards: Price Flexibility