BRINGING EFFICIENCY IN AGRI-COMMODITIES MARKET SAMIR SHAHMD & CEO

2

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Pragati Ka Solid Exchange

CHALLENGES TO PULSES ECONOMY

Challenges / Risks

Price Volatility

Storage Limitation

Working Capital

Market Access and

Remunerative Price to Farmers

Raw Material

Availability

Counterparty Risks

SOLUTIONS IN FUTURES………………………………………………………………..

PULSES PRICES FOLLOW CYCLICAL PATTERN

Pragati Ka Solid Exchange

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CHANA : LEAST VOLATILE AMONGST ALL PULSES

Apr-

10M

ay-1

0Ju

n-10

Jul-1

0Au

g-10

Sep-

10O

ct-1

0De

c-10

Jan-

11Fe

b-11

Mar

-11

Apr-

11M

ay-1

1Ju

n-11

Aug-

11Se

p-11

Oct

-11

Nov

-11

Dec-

11Ja

n-12

Mar

-12

Apr-

12M

ay-1

2Ju

n-12

Jul-1

2Au

g-12

Sep-

12N

ov-1

2De

c-12

Jan-

13Fe

b-13

Mar

-13

Apr-

13M

ay-1

3Ju

l-13

Aug-

13Se

p-13

Oct

-13

Nov

-13

Dec-

13Ja

n-14

Mar

-14

Apr-

14M

ay-1

4Ju

n-14

Jul-1

4Au

g-14

Oct

-14

Nov

-14

Dec-

14Ja

n-15

Feb-

15M

ar-1

5Ap

r-15

Jun-

15Ju

l-15

Aug-

15

0

2,000

4,000

6,000

8,000

10,000

12,000

NCDEX SPOT PRICES

Chana - NCDEX Tur - NCDEX Urad - NCDEX Moong - AGMARK Masoor - NCDEX

Pragati Ka Solid Exchange

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5

Month

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec0

10000

20000

30000

40000

50000

60000

70000

80000

90000

DELIVERIES OF CHANA ON NCDEX PLATFORM

2013 2014 2015

Deliv

erie

s (M

T)

………………………………………………………………..

Pragati Ka Solid Exchange

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

PERCENTAGE OF NEAR MONTH AVG. OI CONVERTING INTO DE-LIVERY

2013 2014 2015

6

HEDGING PRICE RISK

Source: NCDEX

ACCESS TO WORKING CAPITAL………………………………………………………………..

Pragati Ka Solid Exchange7

2013-14 2014-15 2015-160

100

200

300

400

500

600

700

F UNDING T HROUGH COMT RACK ( in C ro re s )

Financial Year

Loan

Val

ue

SOLUTIONS IN FORWARDS………………………………………………………………..

ACCESS TO NATIONAL MARKETS

Around 28000 MT of

commodities traded

(approx. Rs. 120 crore).

Pragati Ka Solid Exchange

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FORWARDS TRADE (QUANTITY IN %)

Castor Seed28%

Maize28%

Chana19%

Sugar7%

Co-riander

11%

Jeera4%

Guar Seed1% R M Seed

1%

Castor SeedMaizeChanaSugarCorianderJeeraGuar SeedR M Seed

TRANSPARENT BUFFER STOCK MANAGEMENT via EXCHANGE

Goal: Involve Private trade in a transparent stock management process

Process:• Set buffer stock targets and permit licensed stockists to participate with exemption

from stock limits.

• Trader can procure domestically or via imports recording procurement prices and

incidental costs.

• Government can notify agencies for retail sale, announce price and quantity for

retail sale.

• Liquidation through transparent, controlled price auction.

• Buyer will process and package stock for sale at Government determined MRP.

Pragati Ka Solid Exchange

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SOLUTIONS THROUGH PRIMARY MARKET DEVELOPMENT………………………………………………………………..

MANDI MODERNIZATION – Roadmap to Modern Mandi………………………………………………………………..

Pragati Ka Solid Exchange

CREATED A WIN-WIN FOR ALL

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13

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Pragati Ka Solid Exchange

Challenges / Risks

C : Price VolatilityVA : Hedging Price Risk in Futures,

for all Value Chain Participants

C : Storage LimitationVA : Increased Number of

Warehouses and Capacity over the Years

C : Working Capital requirementVA : Comtrack and ePledge –

Less Risk – Higher Funding

C: Market Access, Remunerative Prices to FarmersVA : UMP, Mandi Modernization,

Futures, Forwards

C : Raw Material Availability at selected location

VA : Forwards

C : Counterparty RisksVA : Forwards, Hedging

Futures

NCDEX : ADDING ECONOMIC VALUE TO ALL

C : Challenges to market /market participantsVA : Value addition NCDEX has brought to the ecosystem