NCDEX seeks sanction to relaunch pulses futures

The NCDEX, representing the jolt from the farmers, has requested SEBI to sanction the relaunch of futures trading in pulses, specifically chana, tur and urad.

The request has surfaced as a consequence of record high production of pulses in the country, putting the prices of the commodities under pressure. At present, the prices of pulses have gone down below the MSP, requiring a market support price.

Futures trading of Tur and Urad was banned in 2007, while the trading of chana was banned in 2016 after a price rise and risk of high inflation.

SEBI is also likely to allow options trading of one commodity under agriculture and one under non-agriculture soon, with soyabean topping the list of probable commodities for options trading.

Limited and inactive commodities on the exchange, a lack of delivery centres and a high price of market evaluation contribute to the lag in the integration of farmers on the exchange.

The NCDEX witnessed a participation of 26,400 farmers on the Exchange till February 2017, with a potential involvement of 1.5 to 2 lakh farmers by the end of 2017.