Commodity exchange NCDEX is planning to relaunch its agricultural indices in the next two quarters, marking a significant comeback for the discontinued offerings. According to sources, the exchange is working to launch two new indices on guar (Guardex) and spices (Spicedex) as part of its diversification strategy. The guar index will include constituents such as guar gum, seeds and korma, while the spice index will track coriander, turmeric and cumin. As reported by Business Standard, the exchange is also planning to expand into the equity market, targeting entry into the cash segment by January next year. The re-launch of NCDEX's agri indices, which were discontinued since February 2022, represents a strategic move to revive the agricultural derivatives ecosystem.
The relaunch of NCDEX's overall agri index (Agridex) remains dependent on the lifting of the ban on derivatives trading on seven key agricultural commodities. These include non-basmati paddy, wheat, chana, moong, mustard seed and derivatives such as mustard oil and cake, soyabean and crude palm oil. According to sources, the review of this ban may happen next year as the market regulator had extended it in March 2026. The exchange's original agri index was first launched in 2019 and made operational in May 2020, but was discontinued following the derivatives ban implementation. The index used to track 10 commodities selected based on liquidity on the exchange platform, and subsequently, other indices Guarex and Soydex, which were launched in August 2021, were also discontinued.
As reported by Business Standard, the exchange plans to launch the guar and spice indices soon after gauging interest in participation. Sources noted that as the indices will be cash-settled, unlike other agri-commodities which may have physical delivery, the participation is expected to be revived as the exchange already has end users in the ecosystem. Sunil Katke, national head of commodities at Kotak Neo, stated that an agri index could help broaden participation and deepen volumes on NCDEX, supporting market share growth over time. He added that an NCDEX agri index is likely to have a distinct participant mix, with greater participation from value-chain players and other agri stakeholders, alongside investors and traders, compared to MCX's commodity market which has a strong base of traders and investors particularly on the options side.
The exchange has raised ₹770 crore last year from brokers and investors, including prominent names like Radhakishan Damani, Ramesh Damani, Madhusudan Kela and Sunil Singhania, to fund its expansion into new business segments. According to Business Standard, the exchange, backed by top brokers such as Groww and Zerodha, plans to enter the cash segment first, followed by equity derivatives by July next year, subject to regulatory approvals. The exchange also launched a mutual fund transaction platform called NCDEX Nidhi and weather derivatives earlier this year. As the agri derivatives ecosystem evolves, greater awareness, participation and market adoption can support the development of a deeper and more vibrant market over time.
