NCDEX looks to expand in south India, add offerings

MUMBAI (Reuters) - The National Commodity and Derivatives Exchange (NCDEX) is looking to boost its presence in south India and is working on expanding its non-agricultural commodity offerings, top officials said on Friday.

"The south has not been done... The quantity of agricultural produce in the four southern states is huge," said Vijay Kumar, newly-appointed chief business officer of the bourse.

The exchange derives most of its business from the western, north and central regions of India.

"We are also encouraging our existing members to open up offices in the south, instead of only expanding their presence in the north. Because once they set up an office, they start looking at southern commodities as well... From our perspective, it is facilitation. we want to facilitate this penetration and growth."

The exchange is looking to offer up to 10 non-agricultural commodities but did not disclose details about timelines.

"We know very well we have do something in non-agri. We would like to have a better share in gold," said Madan Sabnavis, chief economist at the bourse.

NCDEX is India's second biggest commodity exchange by trade turnover and controls about 88 percent of the trade in agricultural commodities.

Rival Multi-Commodity Exchange (MCX) dominates trade in energy and metals.