(a) whether the Government has revived National Commodity and Derivative Exchange (NCDEX) Limited as an intermediary between the producers and consumer of Agro Products;
(b) if so, the reasons therefor; and
(c) the benefit likely to accrue therefrom?
THE MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND THE
MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD
AND PUBLIC DISTRIBUTION (DR.AKHILESH PRASAD SINGH)
(a) to (c): The Government granted recognition to the
National Commodity and Derivatives Exchange (NCDEX), Mumbai
on 20th November,2003, as a National Multi Commodity
Exchange, to conduct online commodity futures trading. The
Exchange started its operations on 15th December 2003. The
recognition has been granted on a permanent basis. Since
then, the Exchange has been providing a state of the art,
nationwide screen- based online platform for commodity
futures trading. The facilities for trading provided by the
Exchange can be availed of by the producers and consumers of
agro-products also. The main benefits of futures trading are
price discovery and its use as a tool for price risk
management for various categories of persons such as farmers,
manufactures, exporters, consumers etc.