NCDEX (National Commodity & Derivatives Exchange Limited) is one of India’s leading commodity exchanges, offering a technology-enabled platform for commodity derivatives trading. Established in 2003, NCDEX plays a significant role in India’s commodity market ecosystem by facilitating transparent price discovery and efficient price risk management across agricultural and non-agricultural commodities.

NCDEX provides a diversified range of products including commodity futures, options in goods, and commodity index futures. The exchange is widely recognised for its strong presence in agricultural commodities, where NCDEX benchmark prices are closely tracked by traders, businesses, and market participants across domestic and international markets.

Operating under the regulation of the Securities and Exchange Board of India (SEBI), NCDEX focuses on building a reliable, transparent, and technology-driven trading infrastructure. The exchange was among the first domestic exchanges in India to operate from an Uptime-certified Tier-IV data centre, reflecting NCDEX’s strong emphasis on technology, operational efficiency, and secure trading systems.

The NCDEX Group also offers integrated market infrastructure services through its subsidiaries, including clearing and settlement services, repository solutions, and e-auction platforms. These services strengthen the overall commodity trading ecosystem and improve market accessibility for participants across the value chain.

NCDEX continues to contribute towards the development of India’s agricultural sector by supporting better market connectivity, improving price transparency, and enabling wider participation in commodity markets. The exchange is backed by reputed institutional shareholders including Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Limited (NSE), Canara Bank, and Punjab National Bank (PNB).

Today, NCDEX remains an important player in India’s commodity derivatives market with a strong focus on innovation, market development, and technology-led growth.

Commodities traded on NCDEX:

NCDEX Financial Performance FY 2024-25

NCDEX reported a challenging yet resilient financial performance during FY 2024-25 amid volatility in global commodity markets and continued suspension of key derivative contracts. Despite lower trading activity in certain commodities, NCDEX continued to focus on product diversification, technology-driven growth, and strengthening participation across the commodity derivatives ecosystem.

NCDEX FY 2024-25 Financial Highlights

• Total income of the NCDEX Group for FY 2024-25 stood at ₹12,206 Lakhs, reflecting a decline of 10% compared to FY 2023-24.
• Total expenses of the NCDEX Group increased by 5% year-on-year to ₹19,701 Lakhs during FY 2024-25.
• The highest single-day turnover recorded by NCDEX during FY 2024-25 reached ₹1,261 Crores.
• The Average Daily Traded Volume (ADTV) on NCDEX stood at ₹599 Crores in FY 2024-25 compared to ₹848 Crores in FY 2023-24.
• The top traded commodities on NCDEX during FY 2024-25 included:
  • Guar Seed
  • Guar Gum
  • Turmeric
  • Cotton Cake
  • Castor Seed

NCDEX Business Performance FY 2024-25

FY 2024-25 witnessed significant volatility across global commodity markets due to changing policy frameworks, price fluctuations, and supply chain disruptions. While several international markets faced pressure due to food security concerns and trade restrictions, Indian agricultural markets remained comparatively resilient.

India’s grains and pulses production increased to 353.96 million tonnes during FY 2024-25, reflecting growth of 21.6 million tonnes over the previous financial year. Domestic food exports also recorded growth of 6.4%, while global grains trade declined by 7% during the same period.

Despite continued suspension of several key derivative contracts, NCDEX maintained focus on innovation, diversification, and strengthening existing product segments. The exchange continued to expand participation across commodity options and agricultural derivatives markets.

NCDEX Business Updates

NCDEX continued to operate in a challenging regulatory environment during FY 2024-25 as suspended commodity contracts remained under extension until March 31, 2025.

Key business developments during FY 2024-25 include:

• Average daily traded volumes on NCDEX declined by 29% compared to the previous financial year.
• Average daily open interest (ADOI) declined by 9% year-on-year.
• Hedging participation on NCDEX remained relatively stable, while intraday participation declined due to lower volatility in major commodities such as Guar Seed and Guar Gum.
• NCDEX continued expanding its commodity options segment and introduced growth initiatives across existing products.
• Commodities including Castor Seed, Kapas, Coriander, and Turmeric recorded positive growth in average open interest during FY 2024-25.
• The Castor Seed contract emerged as a strong performer with:
  • 4% increase in Average Daily Traded Volume (ADTV)
  • 23% increase in Average Daily Open Interest (ADOI)

NCDEX Future Outlook

NCDEX continues to focus on expanding its presence in commodity options and strengthening risk management solutions for farmers, traders, and Farmer Producer Organizations (FPOs). The exchange remains actively engaged in policy advocacy efforts related to suspended commodity contracts.

Looking ahead, NCDEX plans to diversify its offerings through the launch of new market segments and innovative products, including weather derivatives aimed at managing climate-related agricultural risks.

Key focus areas for NCDEX going forward include:

• Expansion of the commodity options ecosystem
• Development of weather-based derivative products
• Strengthening agricultural market participation
• Increasing accessibility through feeder market locations
• Enhancing collaboration with policymakers and industry participants
• Supporting sustainable and inclusive growth in India’s commodity markets

Despite industry challenges, NCDEX continues to focus on long-term market development, technology-led innovation, and strengthening India’s commodity trading infrastructure.