Mr. Surendar Gupta
Mahismati FPC, Mandla (MP)
We are in a win-win situation after we bought a Put Option in Chana. We are not worried now even if price goes down by even Rs. 1,000 per quintal. On the contrary, if it goes above our locked-in price level due to external or policy-related reasons, we stand to benefit from selling our crop in the open market. This is a big relief for farmers.
Mr. Jitendar Singh Rajput
Mandsaur Farmer Producer Company Limited
Our farmers bought Put Options in NCDEX’s Options Familiarization Program in both Chana and Mustard and secured their harvest time price. We have now choice between the price locked-in via Put Option and the market price prevailing at the Option expiry, whichever is higher. We are grateful to SEBI for their premium support which boosted our confidence in the Put Option as a tool to secure the right price for our crops
Mr. Amit Dhyal Jambeshwar
Digifarm producer company Ltd., Bikaner, Rajasthan
Our FPO bought Put Options for Mustard and Chana at the time of sowing and locked-in our sale price to safeguard against sharp fall usually seen at the harvest. But now prices being nearly 10% higher than our locked-in rate, we can close the Put Option and get a higher rate by selling our crops in the spot market. This is a wonderful feature of the Put option and hope this tool will continue for other commodities as well
Mr. Moti Shankar
Kurel Kisan Producer Company Limited, Bundi, Rajasthan
We are thankful to the regulator and exchange for the gift of Put Options for the benefit of farmers and FPCs. Our member farmers were happy for this new tool which gave them an opportunity to secure a good price for their Mustard crop and later focus on their crop. Our experience is that prices fall in April, but our members will not be impacted because they have bought Put Option. If prices rise, they can sell the crop in the market
Mr. Nandkishore
MP, Agar, Avantika Aatm Nirbhar FPC
Put Option programme launched by NCDEX was very good and useful for us. We have sold Chana crop under this program and we are secure now as our rate is fixed. If the price of Chana goes down from our contract price at the time of harvesting, we will anyway get the price that we fixed earlier. But the best part is if the market performs well for the commodity, we will not exercise our contract. That means, we are absolutely free from the mental tension with regards to pricing. We are associated with the NCDEX for many years and feel proud about it
Mr. Avinash Shukla
Narmada Valley FPC, Madhya Pradesh, Dhar
The program that NCDEX ran through December 2020 and January 2021 in Options was very useful for letting the farmers get familiarized with this new concept. We learnt through it that a Put option is very useful for us. The premium against the surety of price is not as high as compared to the price benefit that we get. We feel lucky that we got an opportunity to participate in such a progressive program. Our FPC has bought Chana Put option and with price assured, the farmers could focus on the cultivation. I thank NCDEX for this wonderful program.
Mr. Sushil Kumar Jain
Director, Toda-Malpura Kisan Producer Co.Ltd., Malpura (Dist-Tonk Raj)
For years, we were at a mercy of local traders while selling our mustard, many times even below the cost of production. This year we got a mechanism from NCDEX we were searching for so long. We seized the opportunity and bought Put Options securing our sale price so high that nobody would have imagined. A small premium for the deal was borne by NCDEX and SEBI
Mr. Prahlad Borgad
Chairman, Surya FPC
Put Option is like a price insurance that NCDEX offers to farmers. Surya FPC has bought Put Options for 70 MT Chana and became worry free about likely price declines at harvesting. But if prices increase, we have an option to sell our crop in the open market. I thank NCDEX for making this excellent tool available to farmers
Mr. Rajkumar Patel
MD, Farmer Future Producer Co. Ltd
NCDEX’s Put Option offered us the double bonanza of fixing the least sale price for our Chana in advance and also the opportunity to participate if prices rally later above that level. A few of our farmers are feeling privileged after they locked-in some sale deals via Put Options at a much higher-than-usual price. Put Option is really a wonderful product
Mr. Rahul Singh Rathod
Director, Badnagar FPC
We bought Put Options in Chana on NCDEX. As the anxiety regarding sales is gone, farmers can now focus on farming only. Although crops are not ready for marketing, farmers know how much they will get for their crop. Farmers are going to be greatly benefitted from Put options. I want to thank NCDEX for taking such a step and request them to continue with similar tools for more crops like Soybean etc
Yogesh Dwivedi
CEO, Madhya Bharat FPC Consortium
Madhya Bharat FPC is a consortium of 125 FPCs across 43 districts. The FPC has been working in Futures segment for price risk management since last few years. But Put Options are like a precious gift to us. Due to higher sowing and better weather, we are expecting a bumper crop in Chana that could drag prices lower as we saw last year. But, this year our members are worry-free after locking their sale price of 40 MT chana via Put Options. The deal was sweetened further after NCDEX, under Options Familiarization Program, borne the premium on options, a great step supported by SEBI to serve the farmers.
Ashish Nafade
Program Director, Jai Sardar FPC
For farmers, the derivatives market was a bit difficult a play in hedging price of their crops, but only until introduction of the Options in Goods. Enabling the locking-in of the sale price in advance through buying a Put Option is the easiest and the most economical way to attract farmers towards the exchange platform. NCDEX-SEBI initiative of premium support was a red carpet for FPOs to connect to the derivatives market.
Pranav Sanghvi
VCP, BK Trading Co.
"We admire the efforts done by NCDEX and taking care of the hedger by providing them financial compensation for stock hedged by them. Such action shows that exchange is taking consideration and protecting the interest for all the market participators. My firm admires such action from NCDEX".
Manish Agarwal
VCP, Ensure Enterprise
"We understood that NCDEX has come out with some scheme to help the hedge to compensate the loss suffered by them due to sudden suspension of contract of castor seed. This is a good gesture and will help hedgers like us to gain more confidence in future trade in NCDEX".
Jayesh Shah
VCP, Bhailal Trikamdas & Co.
"We would like to apreciate the decision taken by NCDEX to protect the hedger as per the given circular for the close out price. Now this will also boost confidence among the participants to do more business through NCDEX platform as first priority, among all the exchange or markets. At the end I would like to thanks NCDEX and team to support us".
Kaushik Bhai
VCP, Ganesh Corporation
"The best step taken by NCDEX is highly motivating and positive and has get back hold of confidence in NCDEX. I am very appreciate of the same. Plz start castorseed contract ASAP".
Prashant Thakkar
VCP, Kalyan Comtrade
"The step taken by NCDEX is highly motivating and positive. It will rebuild the confidence in us. Most importantly it will compensate the loss of hedger to some extent. We really appreciate this step".
Kiran Patel
VCP, Marvin Trader
"As our core business is commodity trading, arbitrage hedging and supply to miller, the step taken by the Exchange is highly motivating and positive to get hold back the confidence in NCDEX. I appreciate the same".
Jagdish Shah
VCP, Jagdish Shah Mangal
"Have received the circular for castor seed and it shows that exchange has taken a very positive step to gain the confidence back of hedgers and investors who had position when with immediate effect the position were squared off without giving any time. I had incurred a loss for the stock which I had in demat but through this circular and step taken by the Exchange, I would be saved from it and my confidence for working with the Exchange has increased. Once again I thank you for taking the positive step and think for investors like us".
Abhay Jain
VCP, MGF Growth Research & Investmart Ltd.
"Step taken by NCDEX is welcoming in the favour of hedger, although the claim offered by NCDEX is less than the actual loss, but as an Exchange, NCDEX has taken a very good step which will boost the confidence among the market participants".
Chintan Patel
VCP, Bhagvati Agro
"I am so happy with the decision that the Exchange took to settle 120/mt. I am in hedging business and I choose NCDEX platform to hedge my position. It was a big set back when NCDEX decided to close castor seed but the way Exchange took decision of settlement, I am pretty happy with it and I request NCDEX to start castor seed contract as soon as possible so we can start investing again and also farmers get their real value of the crop. Thanking again the exchange for the decision".
Tarun Patel
VCP, Patel Tarunkumar D.
"I am Tarun Patel. I am holding comtrack account under karvy stocking with name Patel Tarunkumar D. At the time of closure I had 2,555 MT castor seed in my account. I would like to convey my many thanks to NCDEX for the castor seed settlement. I am in hedging business and I choose NCDEX platform to hedge all my commodities. It was a big set back when NCDEX decided to close castor seed but the way Exchange took the decision of settlement I am pretty happy with it and I request NCDEX to start castor seed contract as soon as possible, so we can start investing again and also farmers get their real value of crop".
Ghanshyam Soni
Member, Cosmic Commodity
"We appreciate the way you thought about investors interest of suspended castor seeds contracts. Bases for the determination of price is satisfied. However lots of things have to be done like: - what about processed stock? - what about goods received, bills also received and yet to be deposited or contacted for deposition? - it is sure that some clients may be reimbursed but most of the clients could not be reimbursed due to lack of requirements as on date - loss of Exchange’s reputation is only partially survived However we take the Exchange’s step as positive".
Ketan Kotak
Member, JV Commodity
"Your circular no. NCDEX/TRADING048/ 2016/103 dated 6 May 2016, we get to know that you have taken the step to reimburse the amount of castor seeds. Its really an admirable step, that rebuilds the confidence of hedger towards NCDEX. This step shows the trustworthyness of the Exchange. We hope that you will kindly give us the credit of reimbursed amount in our account as soon as possible".
Kaushal Shah
VCP, JB Comtrade
"We at BK commodties are really happy by the action taken on castor seed contracts by the Exchange in the month of January by suspending it. We always had confidence in the Exchange's rules and regulations, as well as its structure of the commodity business. By the news of exchange giving a benefit of Rs.120 on castor contracts we are happy, not for the monetary gain or losses made by the hedgers but for the transparency and trust that we have in the Exchange. NCDEX has yet again proved that its ethical business methods are always with its members & clients. We are happy for the future business that will happen with these castor refund process, and the loss faith of people in Exchange will get converted into confidence. We are thankful to the Exchange as well as the entire team for such issues solved in a very appropriate manner".
Bharat Bhai
VCP, KLB Stock Broking Pvt Ltd.
"A very welcoming step by the Exchange. This will bring a very positive vibe in clients towards the Exchange".
Aasif Bhai
Member, Trade bulls
"Surprisingly a very positive step by the Exchange; it will help in rebuilding exchange's image and develop confidence in the market participants".
Bankim Bhai
Member, Monarch
"We are thankful to you & NCDEX for giving the credit of Rs.120/- qt. in castor close out price".
Nishit Ji
VCP, Chandarana Enterprises Ltd.
"This mail is with reference to NCDEX's circular regarding compensate the loss of real hedgers on suddenly close out of castor seed futures contracts; we heartily appreciate this excellent initiative taken by the Exchange.The Exchange again proves that they care for genuine clients and build an unbreakable trust. Always looking best from the Exchange".
Hiren Ji
VCP, Times Comtrade
"We are very thankful to you for your support and action taken in regard to reimbursement of castor losses to the parties who are genuine and have valid deliverable stock in NCDEX accredited warehouse and also have short position in NCDEX exchange. This action will lead to encouragement of client's belief in the Exchange and more clients will attract to do business in NCDEX platform in demat comtrack account instead of holding stock in non-NCDEX warehouse. This is a good indication for mitigate the speculation at a acceptable level because stock can be access to NCDEX and good measures can be taken from time to time. We really appreciate your support, and will better serve the NCDEX rules and regulation".
Kamlesh Shah
VCP, Kamlesh Shah HUF
"A very positive move by the Exchange and we are thankful for the same".
Vipul Shah
VCP, DK Comtrade
"Thankful for the actions taken by the Exchange. It has rebuild my confidence towards the Exchange".
Mahesh Shah
, VCP, Mihikita Enterprise
"Any step initiated by the Exchange to ameliorate the misery of hedgers/traders in the castor seed trade suspended is a welcome step although the whole process has been a long drawn out affair and needs expeditious closure to build confidence and ambience of transparency. There are loose ends but contracts are not suspended in other commodities to strengthen the system. It is an ongoing process and defaulting parties need to be brought to books howsoever powerful they can be if the confidence and pride of the exchange is to be restored".
Hasmukh Bhai
Member, Parko Commodity
"Regarding circular ref no.NCDEX/TRADING-050/2016/106 dated 11-05-2016 for step taken by NCDEX is highly motivating and positive, it will rebuild confidence in us and our clients, most importantly it will compensate the losses of hedgers to some extent we really appreciate this step".
Suresh Ji
VCP, N H Associates
"This is a very good step taken towards rebuilding confidence levels in client and it will also offset the losses to some extent for the hedgers. We welcome this step from the Exchange".
Niken
Member, C P Commodity
"We appreciate the decision and perfect calculation of close out price by the Exchange regarding the compensation".
Madhur Jalani
Farmer
The big farmers who don’t have urgent need of capital have no doubt benefitted by this price rise, but rest of them haven’t. I regularly go mandi and don’t see Soyabean coming there for sell. So, I don’t think farmers have the crop in abundance and they are selling. Those who had to sell, have already sold. Rest are holding it and will sell around next season sowing.
Janaki Prasad
Farmer
We had anticipated this kind of rise in coming months and so sold only 25% of my crop. I am from MP and the kind of crop I witnessed around gave me the confidence in predicting future prices and NCDEX prices also helped me in it. I am very happy and want prices to be like it always.
Manish Banediya
Farmer
Governemnt is giving loan on 0% these days. So no farmers nowadays sells his crop right away. This price rise has benefitted us immensely and we are very happy. Farmers are not organized, so SOPA is saying anything. We all farmers see NCDEX prices on television channels and get an idea of where the prices are heading. So, we knew the prices are to rise and so most of the farmers kept his stock and now selling on huge profits. After the divastation we saw in wheat, the price rise in soyabean has come as a life saver to the farmes.
Arjun Singh
Farmer
This time farmers have indeed benefitted by the recent price rise. As the crop was not up to the mark this year, we had a fair idea of the upcoming rise in prices. Besides, I use to see NCDEX prices too and that also gave me a signal of this price trend. So, I had not sold out much of my crop and now I have reaped the profit by selling it in markets.
Firoz Patel
Farmer
The beneficiaries are only 10-20% big farmers, who are also traders. Most of the farmers are not in position to hold their crop that much longer and they sell 70-80% of their produce within one month of harvesting.
Ajay Kumar Agarwal
Director, Gee Kay Tradecom Ltd.
The beneficiaries are only 10-20% big farmers, who are also traders. Most of the farmers are not in position to hold their crop that much longer and they sell 70-80% of their produce within one month of harvesting.
Rahil Shaikh
MD, ED & F Man Commodities India Pvt. Ltd.
AGRiM Sauda has been a welcome initiative. It has been the first ever constructive step taken towards reducing counter-party risks involved in commodity-based forward trading. AGRiM Sauda will help physical market participants expand their business, provided this market sees improved liquidity and bid-ask quotes entered are more realistic. AGRiM Sauda opens up an additional channel for giving and taking deliveries. At present, futures market facilitates deliveries based on lot-IDs. Sellers who have executed these deliveries are not known. If sellers’ identities are revealed, buyers can synchronise deliveries received on futures platform with forward platform. Once liquidity builds up in this segment, it will be easy to track demand and supply in niche/remote markets. For instance, if a sugar buyer from Rajasthan enters the quote in the online forward trading system, he can be easily contacted. Exchange traded forwards can also facilitate tracking the sugar supplies, if millers use this platform instead issuing tenders to release sugar stocks. To increase participation on this platform, more awareness needs to be created among physical market participants. Trading terminals can be made more user-friendly by applying commodity-wise filters. This will enable traders interested in sugar to see the quotes inserted only for sugar. Additionally, provision can be made to get the details of trade reflected on the right-hand side of the screen once the trader clicks on a particular trade of his interest.
Praveen Agrawal
Samarth Technotrade P. Ltd
Thanks for arranging exclusive Young India Trader Program conference for our team, The conference was very informative and beneficial for the folks from our team that attended. I thought there was a good mix of different topics presented and this was a good forum to share the work that has been done. I would say overall the speakers were excellent! Very informative, well structured format and one of the best conferences I have ever been to! special thanks to Suresh Ji Ashish along with you.
Anil Khandelwal
Adroit Commodities
Young India Trader Program was a fabulous program in two aspects: Our people got the confidence that all is not lost, the commodity market is still there and they could sense the passion in your team . It was the fantastic updation in terms of knowledge building. I am sure this kind of program is a real confidence booster and at the same time it opened our eyes that exchange is working day n night to make it a real game changer. Thank you for your unfelling support.
Mahesh Deshmukh
Lokmangal
The system to mitigate counterparty risk is very good. The margin you take is very much assuring that the risk is at minimum level. Earlier we could do forward trading in only our own geographical area. But certainly, the forward platform of NCDEX has provided us a truly national market. With the view of doing business, it is a easy way. But the participants should grow. Then only the speed of business can increase. Currently the contracts can be done in either fixed price or the reference price. Reference price allows more flexibility. But however the future contact's lower volumes makes future's price unfit to be used as a fair reference price. So improving volumes in future's contacts is essential for a smooth functioning forwards market. Main advantage of this new channel of delivery is the flexibility. Earlier, with future platform, a trader even if having a very good quality of commodity couldn’t sell it on NCDEX if it didn’t match the exchange specification. Now that compulsion has gone. This point has not been understood. If you have a better quality than NCDEX and there is a buyer who appreciates that and is ready to give a premium for it, both the buyer and seller can come together on the forwards platform which otherwise would not have been possible on the futures platform. We need to have more buyer on the platform. NCDEX should work for increasing participation, then only the price discovery mechanism will be set right.
Mr. Kalpesh Patel
NORTHPOLE ASSOCIATES
We at NORTHPOLE ASSOCIATES are thankful to NCDEX and IIFL for your support and encouragement to organize this new product awareness program in our town Nadiad for our prestigious clients. Due to this root level awareness we have generated a positive feed back from our valuable clients, hence we look forward for such product information programs in near future, which will help us and our clients in our business over all. Special thanks to NCDEX TMr. Chintan Modi, Mr. Ajay Sharma, IIFL Team and NCDEX Team.
Mr. D. K. Aggarwal
Chairman & Managing Director – SMC Comtrade Limited
GOLDHEDGE is a very useful and relevant contract being launched by NCDEX particularly in view of the physical delivery constraints being faced by the physical players and the fact that the contract is intention matching contract, therefore the outstanding position would be cash settled. Thus, this would prove to be a very effective hedging and risk management tool for importers, traders, jewelers and exporters. Since the contract value would exclude custom duty & local taxes therefore, the total value of the contract is less as compared to the other existing contract of the same quantity
Naveen Mathur
Associate Director - Commodities and Currencies, Angel Broking
GOLDHEDGE is a very good contract and the kind of sync it has with the international market makes it exciting. Cost effectiveness is the other positive to the contract and this is a big step towards making the gold contract more feasible for different types of investors in India.
Suresh Nair
Executive Director, ADMISI Commodities Pvt. Ltd.
GOLDHEDGE contract appeals to hedgers and I would see this getting good participation going forward.
Kunal Shah
Head - Research, Nirmal Bang Commodities
GOLDHEDGE provides a wonderful opportunity for traders who are not looking for physical deliveries to invest in gold by tracking the international markets without worrying about local premium, taxes, etc. A simple contract where all they need to do is focus on the international market
Renisha Chenani
Manager- Research, Edelweiss Comtrade Ltd
GOLDHEDGE is a win-win situation for all participants in the commodities market. This contract can revive market confidence and commodity business in 2014.
Manoj Kumar Jain
President - Commodities & Forex, Indianivesh Commodities Pvt Limited
GOLDHEDGE contract has two benefits- one it’s cost-effective as it exempts import duty and other local taxes and secondly, unnecessary premium/discount related distortions does not arise in this contract which is important for traders and hedgers
Mr. Ajay Kedia
Director, Kedia Commodity Comtrade Pvt Ltd.
NCDEX's gold-hedge contract is the perfect solution for those who are not looking for physical deliveries to invest in gold by tracking the international markets without worrying about local premium, taxes, etc. The new Gold Hedge contract will give the true picture of Hedging and address the anomalies created by the physical markets in futures prices to provide a correct benchmark and allow wider participation in the gold market. I appreciate NCDEX for the same and looking forward to get good participation.
Mr. Dharmesh Bhatia
Deputy Vice President – Research, Kotak Commodities Services Ltd.
NCDEX GOLDHEDGE is a perfect contract for hedging on COMEX. Being an intention-matching contract, the delivery is optional and hence GOLDHEDGE is a good instrument for speculation. Moreover, it is an appropriately timed contract and has potential to become a new benchmark for gold prices, provided it sees reasonable liquidity.
Ms. Rajni Panicker
Head of Commodity Research, Phillip Commodities India Pvt Ltd.
GOLDHEDGE is a pure play of gold price movement in the international market.,br>
Expiry of this contract is aligned to currency futures expiry, and hence it provides for arbitrage opportunities. Additionally and importantly, it serves as a good tool for hedging; especially at time when hedging in gold has become crucial in light of the new gold import policies.
GOLDHEDGE contract is also in sync with government as well as RBI’s efforts at looking at alternative avenues to investing in gold other than physical purchases.
Bhushan Mendiratta
Director, Yug Commodities
GOLDHEDGE is the best hedging mechanism because in case of other contracts in the market there are a lot of distortions due to import restrictions which make them unattractive for hedgers.
Suresh Arora
Director, Raghunandan Industries
First time we have a GOLDHEDGE contract which has international parity, low cost, without any manipulations and hassles. We expect it to get a lot of volume