The first ever National Multi Commodity Exchange of the country has been launched in Ahmedabad in November, 2002, using state-of-the art satellite communication technology. This exchange was initially permitted to trade in eight oil seeds, oil and oil cake including deoiled cake.

Government of India has granted it the status of a National Multi Commodity Exchange and it has now been incorporated as M/s. National Multi Commodity Exchange of India Limited. NMCE, managed and operated by professionals, is a Joint Venture of GAIC, Central Warehousing Corporation, NAFED, NIAM, Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. GAIC was instrumental in obtaining crucial clearances from Gol and coordinating with the suppliers of computer and satellite communication hardware and software.

Using NMCE's countrywide satellite connectivity, trading members from various parts of India such as Mumbai, Delhi, Indore, Cochin etc. have started trading on this Exchange. Unlike the traditional exchanges with limited coverage and the likelihood of part of the trade not being taken on record, all transactions are instantly recorded and the prices and volumes instantly known all over the country, bringing transparency and security. Futures trading upto one year's time is permitted. All the trades are electronically settled by the end of the day by HDFC Clearing House electronically. It will thus benefit the farmers, processors, exporters, bankers, traders and others involved.

The Ware house receipt system, an innovative instrument in the area of quality certification, delivery and settlement, is an integral part of this system. Through this, the Commodity will be converted into paper and transacted through the Exchange.

The Exchange has received good response and the average daily trading is over Rs. 100 Crores. This is as against the projected turnover of Rs 70 Crores daily by the end of the first year. With the recent lifting of ban on restricted commodities by the Central Government, allowing future trading in 54 more items including wheat, rice, pulses, chemicals and also bullion, the exchange is poised to provide an effective, vibrant platform for futures trading. This will further increase trade volumes. As a result, the Exchange will earn much higher profits than estimated and the investment of the Government will appreciate substantially.

For further details log on to www.nmce.com