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NCDEX Launched 2 New Agri Commodity Indices – GUAREX, SOYDEX

NCDEX launches agri sectoral indices GUAREX, SOYDEX

NCDEX launches agri sectoral indices GUAREX, SOYDEXNational Commodity and Derivatives Exchange (NCDEX), India’s agricultural commodity exchange, launched India’s 1st sectoral indices in agricultural-commodities space such as GUAREX and SOYDEX.

  • GUAREX and SOYDEX were also India’s 1st return based agricultural futures index in agricultural-commodities.

Key Facts about the Indices:

i.These indices will be available on the NCDEX’s website to represent the performance of Guar complex and Soy complex. Futures trading in these indices will be launched later.

ii.Price Tracking: 

  • GUAREX – It is the return based index, it tracks the change in the price of the futures contracts of Guar Seed and Guar Gum Refined Splits on a real-time basis.
  • SOYDEX – It will also trace the price changes in futures contracts of Soybean and Refined Soy Oil.

iii.Weightage:

  • GUAREX will have a weightage of 63.43 percent guar seed and 36.57 percent guar gum refined splits.
  • In SOYDEX, soybean and refined soy oil will have a weightage of 67.92 percent and 32.08 percent, respectively.

iii.Both the indices will be useful for hedgers to identify low-cost products. It will also offer trading strategies and risk management exercises

iv.Existing Index: In May 2020, NCDEX had launched AGRIDEX, a return-based composite index tracking futures price movement in 10 commodities on NCDEX. It has given over 40 percent return within 1 year of operations.

Points to be noted:

  • Futures Contract-It is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.
  • Hedger – A hedger is any individual or firm that buys or sells the actual physical commodity. They are the primary participants in the futures markets.

Recent Related News:

On June 22, 2021, India and Fiji signed a Memorandum of Understanding (MoU) for cooperation in the field of Agriculture and allied sectors during a virtual meeting. This MoU will be executed by the Ministry of Agriculture & Farmers Welfare (MoA&FW) from India and the Ministry of Agriculture of Fiji.

About National Commodity and Derivatives Exchange (NCDEX):

It is regulated by the Securities and Exchange Board of India (SEBI).

Establishment –  2003
Headquarters – Mumbai, Maharashtra
MD & CEO – Arun Raste