NCDEX’s Agri Index to trade by month end

Mumbai: NCDEX, the country’s largest farm derivatives exchange, will offer trading of Agridex, its agri futures index by the end of this month, making it the first such index to be available for trading.

The cash-settled index is aimed at mutual funds and Category III alternate investment funds who have been permitted by Sebi to trade in commodity derivatives. It is also aimed at retail investors who might wish to diversify from equities and debt into another asset class.

Three concurrent contracts will be available for trading. They would expire on the last trading day of June , July and August, said a senior NCDEX official, confirming the development.


One lot will have 500 index units with the index being constituted of 10 commodities. The listing is based on a 50 per cent weightage of production of the commodity and its liquidity on the exchange. The commodities comprising the index include soyabean , castor seed, mustard, chana, coriander among others.

Shareholders of NCDEX include NSE (15 per cent), LIC (11.1 per cent), Nabard (11.1 per cent), Iffco (10 per cent), Oman India Joint Investment Fund (10 per cent) and PNB (7.29 per cent).