The federation plans to set up the same by the end of current fiscal in states major mandis. Anil Malik, managing director, Hafed told FE, At present only two national level commodity stock exchangesMCX and NCDEX have their spot exchanges, but soon ACE will also open its spot exchanges and we will have them in Haryana mandis. It will provide the farmers with an option to compare the market rates of the commodities and get a better remuneration for their produce. It will also reduce manipulation of Arhtiyas operating in the local mandis.
ACE will be the fifth national-level commodity exchange. It will be multi commodity, screen-based and online trading platform, which is being promoted and anchored by the Kotak Mahindra Bank. Hafed has taken 15% equity in this venture. The Kotak Group owns 51%. The Bank of Baroda, Corporation Bank and Union Bank are other major public sector partners. In addition to Castor Seed, the exchange will commence trading in four products in agricultural sector viz soyabean, soya oil, rape seed and chana.
Hafed had run a spot exchange of NCDEX on trial basis in Rewari mandi and 800 tonne of commodities were traded through it. Malik further informed that futures trading of commodities will also be possible through the ACE soon.
Hafed did start with futures trading of wheat and mustard in 2005-06 and earned good revenue but then wheat futures trading was banned. Now with the revival of futures trading of wheat again we are rethinking to get into it again. Though we have purchased around 2,000 tonne of wheat for commercial use but final decision is yet to be taken. We will be trading on the ACE through our societies or a special purpose vehicle, he said.
The association of Hafed with the ACE will help it in playing the role of an aggregator and a risk manager on behalf of thousands of farmers, who will be motivated to become participants of the ACE in the coming decade.