National Commodity and Derivatives Exchange (NCDEX)

NCDEX (National Commodity & Derivatives Exchange Ltd) is an Indian commodity exchange offering trading in agricultural and select non-agri products, enabling price discovery and risk management.
OPEN DEMAT ACCOUNT
National Commodity and Derivatives Exchange (NCDEX)
OPEN ACCOUNT
3 mins
30-November-2025

Key takeaways

  • The National Commodity and Derivatives Exchange (NCDEX) is a leading Indian commodities exchange that primarily focuses on agricultural products.
  • While the headquarters are based in Mumbai, NCDEX operates a network of offices across India to ensure smooth trade facilitation.
  • Exchanges such as NCDEX have contributed significantly to the modernisation of agricultural practices, enabling better price transparency and market access.
  • Popular commodities traded on the platform include barley, wheat, and soybeans, reflecting the exchange’s strong agricultural orientation.

NCDEX full form is National Commodity & Derivatives Exchange Limited. It is a major online platform in India where people can trade agricultural and other commodities. NCDEX helps buyers and sellers carry out trades in a transparent, secure, and regulated environment. It plays a key role in India’s commodity market by offering futures contracts that help in price discovery, risk management, and better planning for farmers and traders alike.

What is NCDEX?

The National Commodity and Derivatives Exchange (NCDEX) is one of India’s leading online commodity trading platforms, mainly focused on agricultural products. Headquartered in Mumbai, it also has offices across the country to support smooth trading. NCDEX plays an important role in helping farmers, traders, and buyers by providing fair price discovery and reducing risks through futures contracts. By offering a transparent and regulated marketplace, it helps modernise agricultural trade and ensures farmers get better market access. Some of the popular commodities traded on NCDEX include barley, wheat, soybean, chana, and mustard seed. Overall, NCDEX acts as a bridge between farmers and markets, making trading in agri-commodities more organised and reliable.

Pro tip

Invest in equities, F&O, and upcoming IPOs effortlessly by opening a Demat account online. Enjoy a free subscription for the first year with Bajaj Broking.

demat

History & evolution of NCDEX

The National Commodity & Derivatives Exchange Limited (NCDEX) was incorporated on April 23, 2003, and began its operations on December 15, 2003. It was founded with the support of prominent institutions, including the National Stock Exchange (NSE), ICICI Bank, CRISIL, National Bank for Agriculture and Rural Development (NABARD), and the Life Insurance Corporation (LIC) of India. NCDEX is a fully automated, technology-enabled commodity exchange that has played a key role in transforming India’s agricultural trading landscape.

Over time, the exchange has facilitated efficient price discovery, improved transparency, and offered effective tools for risk management. It provides a wide range of agricultural commodities that are actively traded by farmers, traders, processors, and investors. Its electronic trading platform has helped integrate market participants from across the country.

To promote more robust market engagement, NCDEX has introduced various instruments such as futures, options, and indices specifically designed for agricultural markets. These tools help enhance market efficiency and make commodity trading more structured and investor-friendly in India.

The NCDEX has achieved several milestones:

  • Enhancing transparency within the agricultural trading market.
  • Supporting fair price discovery for farmers and traders.
  • Establishing NCDEX price benchmarks that are referenced on an international level.
  • Operating under the regulation of SEBI, thereby ensuring a secure and growth-oriented trading environment.

Commodities Traded on the NCDEX

NCDEX commodities fall into four categories: agricultural items (like wheat, maize, guar seed), spices (coriander, cumin, turmeric), pulses and oilseeds (mustard, chana, castor), and others like cotton and sugar. Guar seed, guar gum, and cottonseed oilcake are among the most actively traded commodities on the exchange.

What does NCDEX do?

Several factors influence the prices of agricultural products, causing them to fluctuate based on market conditions. External factors such as storms, droughts, early or delayed monsoons, and natural calamities significantly impact pricing. To mitigate potential losses, a farmer anticipating a price drop may seek financial security through a futures contract. This contract allows them to sell their produce at a pre-determined price on a future date. NCDEX plays a crucial role in facilitating these trades, acting as an intermediary between farmers and buyers.

How does NCDEX works?

NCDEX, a professionally managed multi-commodity exchange, is primarily an online platform for buying and selling agricultural commodities. However, it has widened its horizons and started trading in other commodities, such as energy resources and metals.

How to trade at NCDEX?

  • Open a trading account with an NCDEX-registered broker.
  • Submit KYC documents such as Aadhaar, PAN, and bank statements.
  • Deposit the required margin amount to activate your account.
  • Choose a commodity and the preferred trading instrument.
  • Place buy or sell orders through the online platform.
  • Monitor positions and manage risk using available tools.
  • Settle trades through physical delivery or cash settlement.

Trading on NCDEX is easy and investor-friendly. To start, open a commodity trading account with an NCDEX-registered broker and link it to your Demat account. Once active, ensure sufficient funds are available in the account to begin trading in your preferred commodities.

NCDEX Financial Performance

NCDEX (National Commodity & Derivatives Exchange) recently announced its financial results for FY25, showing a profit of Rs. 234 crore. However, this profit mainly came from one-time gains through selling some strategic assets—not from better business operations. In fact, while they had a net loss of Rs. 27.7 crore last year, the current profit hides a drop in their regular income from core business activities.

What does NCDEX primarily trade?

NCDEX offers the widest selection of agricultural commodities in India, totalling 23 permitted items. These include vital produce such as pulses, spices, and guar—commodities that are largely absent from global exchanges but hold economic significance for India. They also represent a valuable part of India’s international trade framework.

Advantages of NCDEX

Trading on NCDEX offers portfolio diversification, transparent pricing, and efficient risk management. Its digital platform ensures secure, structured access to a wide range of agricultural commodities, making it a valuable marketplace for both institutional and retail investors.

1. Market transparency

NCDEX has greatly contributed to increasing market transparency by providing an online platform to trade in commodity derivatives. The process of buying and selling commodity derivatives happens online, and every investor can review and analyse the market prices, expiry dates, and other factors without any possibility of fraud or scams.

2. Effective price discovery

NCDEX provides a transparent and efficient platform for price discovery of agricultural and other commodities. This helps farmers to price their products more accurately even if they are not participating in the derivatives market.

3. Lower costs

NCDEX has reduced the cost of price data for farmers by removing middlemen. Previously, intermediaries controlled market information, but the platform now empowers farmers with direct access to pricing and trade insights.

4. Improved agriculture practices

NCDEX has played an important part in developing improved agricultural practices in the country. The introduction of the exchange has increased overall quality awareness through the standardisation of quality requirements. Now, farmers are more aware of producing high-quality crops.

How to open an NCDEX Demat account?

Now that you understand NCDEX, here is how you can open a demat account for commodity trading.

1. Choose a stockbroker

Compare and analyse various stockbrokers who are members of the NCDEX commodity exchange. Compare their features and associated costs to find the most suitable one.

2. Fill out the application form

Complete the application form to open the NCDEX demat account with all your personal and bank details. You will also have to submit documents such as a PAN card.

3. In-person verification

In-person verification is compulsory to open an NCDEX demat account. The stockbroker will verify all the information and documents before approving them.

4. Demat account opening

After successful verification, the stockbroker will open your NCDEX demat account. You must deposit margin money after the account is opened to start NCDEX trading.

Conclusion

NCDEX is one of India’s leading agricultural commodity exchanges, providing a transparent and efficient way to trade and take advantage of price fluctuations. However, understanding how contracts are settled is essential. Certain contracts involve physical delivery, meaning you’ll receive the actual commodity if you keep the position until expiry. To avoid this, you only need to exit the trade before the contract expires.

Other Popular Topics

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

  • Apply for loans online, such as Instant Personal Loan, Home Loan, Business Loan, Gold Loan, and more.
  • Invest in fixed deposits and mutual funds on the app.
  • Choose from multiple insurance for your health, motor and even pocket insurance, from various insurance providers.
  • Pay and manage your bills and recharges using the BBPS platform. Use Bajaj Pay and Bajaj Wallet for quick and simple money transfers and transactions.
  • Apply for Insta EMI Card and get a pre-qualified limit on the app. Explore over 1 million products on the app that can be purchased from a partner store on Easy EMIs.
  • Shop from over 100+ brand partners that offer a diverse range of products and services.
  • Use specialised tools like EMI calculators, SIP Calculators
  • Check your credit score, download loan statements and even get quick customer support—all on the app.

Download the Bajaj Finserv App today and experience the convenience of managing your finances on one app.

Do more with the Bajaj Finserv App!

UPI, Wallet, Loans, Investments, Cards, Shopping and more

GET THE APP

Disclaimer

Bajaj Finance Limited (“BFL”) is an NBFC offering loans, deposits and third-party wealth management products.

The information contained in this article is for general informational purposes only and does not constitute any financial advice. The content herein has been prepared by BFL on the basis of publicly available information, internal sources and other third-party sources believed to be reliable. However, BFL cannot guarantee the accuracy of such information, assure its completeness, or warrant such information will not be changed. 

This information should not be relied upon as the sole basis for any investment decisions. Hence, User is advised to independently exercise diligence by verifying complete information, including by consulting independent financial experts, if any, and the investor shall be the sole owner of the decision taken, if any, about suitability of the same.

Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.
For customer support, call Personal Loan IVR: 7757 000 000

Disclaimer

Standard Disclaimer

Investments in the securities market are subject to market risk, read all related documents carefully before investing.

Broking services offered by Bajaj Financial Securities Limited (Bajaj Broking). Reg Office: Bajaj Auto Limited Complex, Mumbai –Pune Road Akurdi Pune 411035. Corporate Office: Bajaj Financial Securities Limited, 1st Floor, Mantri IT Park, Tower B, Unit No 9 & 10, Viman Nagar, Pune, Maharashtra 411014. SEBI Registration No.: INZ000218931 | BSE Cash/F&O/CDS (Member ID:6706) | NSE Cash/F&O/CDS (Member ID: 90177) | DP registration No: IN-DP-418-2019 | CDSL DP No.: 12088600 | NSDL DP No. IN304300 | AMFI Registration No.: ARN –163403.

Details of Compliance Officer: Mr. Boudhayan Ghosh (For Broking/DP/Research) | Email: compliance_sec@bajajbroking.in | Contact No.: 020-4857 4486. For any investor grievances write to compliance_sec@bajajbroking.in/ compliance_dp@bajajbroking.in (DP related)

This content is for educational purpose only. Securities quoted are exemplary and not recommendatory.

Research Services are offered by Bajaj Broking as Research Analyst under SEBI Regn: INH000010043.

For more disclaimer, check here: https://www.bajajbroking.in/disclaimer

Frequently asked questions

What is the use of NCDEX?

NCDEX (National Commodity & Derivatives Exchange) facilitates transparent and efficient commodity trading in India. It provides a structured marketplace for agricultural and non-agricultural derivatives, allowing farmers, traders, and investors to hedge against price volatility. By eliminating middlemen, it ensures fair pricing, enhances market accessibility, and promotes liquidity in the commodities sector.

What is NCDEX and how it works?

NCDEX is an online commodity exchange that enables trading in agricultural and non-agricultural derivatives. It operates through a secure, technology-driven platform where traders can buy and sell futures contracts. Market participants register, complete KYC formalities, and access real-time price data. The exchange ensures regulatory compliance, price discovery, and risk management while acting as an intermediary between buyers and sellers.

What is NCDEX full form?

NCDEX stands for National Commodity & Derivatives Exchange Limited. It is a leading online commodity exchange in India, enabling traders to buy and sell agricultural commodities and their derivatives in a transparent and regulated environment.

What is NCDEX in the share market?

NCDEX is India's leading agricultural commodity exchange, holding a dominant market position since 2005 based on average daily turnover. It is a technology-driven and professionally managed platform, providing an efficient marketplace for commodity trading.

What is the lot size for NCDEX?

The standard lot size for NCDEX trading is 10 metric tons (MT) or multiples thereof, depending on the specific commodity being traded.

What is the difference between NCDEX and MCX?

NCDEX focuses mainly on agricultural commodities like pulses, spices, and grains, catering to farmers and agribusinesses. In contrast, MCX covers metals, energy, and bullion, serving traders interested in industrial commodities such as gold, silver, and crude oil.

Which is better—MCX or NCDEX?

The better exchange depends on your trading goals. Choose MCX if you are interested in metals and energy markets. Opt for NCDEX if agricultural commodities align with your interests. Both platforms offer unique benefits based on commodity type and investment strategy.

Who controls NCDEX?

The Securities and Exchange Board of India (SEBI) regulates and oversees NCDEX. The exchange also operates under various laws, including the Securities Contracts (Regulation) Act, 1956, and the Companies Act, ensuring a transparent and well-regulated marketplace.

Is NCDEX a government company?

NCDEX is a government-owned commodity and derivatives exchange, incorporated on 23 April 2003. It operates under the supervision of the Ministry of Finance and has an independent board of directors. The platform facilitates commodity derivatives trading and received its Certificate of Commencement of Business on 9 May 2003.

What is an example of NCDEX?

An example of NCDEX trading is a wheat futures contract. A farmer anticipating a price drop can enter into a futures contract on NCDEX to sell wheat at a pre-determined price. This contract helps secure earnings despite market fluctuations. Similarly, traders and investors participate in such contracts for commodities like soybeans, mustard seed, and chana to hedge risks or speculate on prices.

Show More Show Less