NCDEX looking to develop commodity derivatives ecosystem in Iran, Nepal

Close on the heels of its partnership with the Colombo Stock Exchange (CSE) to develop a commodities derivatives ecosystem in Sri Lanka, India's largest agricultural commodity exchange, NCDEX is seeking similar collaborations with exchanges in Iran and Nepal, according to its Chief Executive Officer (CEO), Arun Raste.

Currently, NCDEX's partnerships are mostly pro bono (without charge), but the exchange aims to monetize these arrangements in the future. This initiative comes in response to a significant decline in average daily revenues following the suspension of futures trading in seven major agricultural commodities. Additionally, NCDEX views the sharing of knowledge and expertise in developing commodity derivatives ecosystems in countries where such systems do not exist as a way to diversify and expand its revenue streams, which have been adversely affected by the ban.

Raste emphasized, "There are two things to consider. First, everyone wants growth. If you are in business, you need to grow. This growth can happen internally within the country or externally. To grow within the country, we need to recover our commodities. If we can regain our commodities, we can look at expanding our commodity basket."​

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