A market expert told Zee Business “ NSE is market leader in equity and NCDEX has highest marker share in agri commodities. And merger of the two entities could be a game changer for agri commodity business”.  

In India, NCDEX was the second exchange after Multi Commodity Exchange which started commodity derivative on exchange platform in December 2003.

MCX and NCDEX started their operation in a month time interval. However, MCX strategically moved out from sensitive agri commodities to non agri commodites especially bullion and base metal products.

NCDEX focused more on agri commodities and many of them directly affected the budget of kitchen and also fuelled inflation. So became politically sensitive that’s why every successive government intervened in their business directly.

After four years of launch, NCDEX faced first heat from the government in 2007. When the Government banned future of tuar and urad blaming the same for then rise in inflation.

After that,Guar seed and Guar gum prices jumped exponentially which were major volume contributor. After that exchange faced twice time ban on castor seed.