How NCDEX Benefits Agricultural Sector?

National Commodity and Derivates Exchange (NCDEX) is India’s national commodity exchange owned by the Ministry of Finance. The main commodity under ncdex is Agriculture produces. Wheat, barley, soybean, sugar, maize, etc., are the most valued commodities on NCDEX. Apart from agricultural outputs, Metals, natural gases, petroleum products, etc., are also listed on NCDEX. Like the stock market, commodities are exchanged on NCDEX. Farmers, investors, traders, and individuals have accounts on this platform.

India is an agro-based country. Hence, the requirement of such a commodity exchange is very crucial here. It is said- NCDEX has revolutionized agriculture due to its various advantages. The advantages are as follows-

1. Offers market transparency to farmers 

Many times, farmers end up selling their produce at less prices due to a lack of information. NCDEX solves this problem. It encourages price transparency among farmers, investors, and traders. Through NCDEX farmers know the prices of various agricultural products in real-time. This helps them in getting better prices for their products and earn higher profits.

2. Cuts the middlemen 

Traditionally farmers sell their produces through middlemen. But NCDEX provides a platform to the farmers at which they can directly sell their produces. The middlemen eat up the profit of farmers. However, NCDEX allows them to get the best prices for their products. Secondly, due to the elimination of middlemen’s commissions; the profit of farmers also increases.

3. Improved quality of agriculture produces 

NCDEX fixes quality standards for the commodities for all exchanges. Commodities have to pass this quality test to participate in the NSDEX commodity exchange. Hence, they produce their agricultural outputs according to the set standards. The NCDEX exchange benefits farmers in many ways. Hence, they work on improving product quality. It ultimately affects the quality of overall agricultural production in India.

4. Help farmers in price discovery

NCDEX platforms are excisable 24*7. Hence, farmers can discover the prices of their commodities. It tells the prices of various farm products in real-time. This way farmers can know the right prices of commodities and earn maximum profit.

5. Provide customer support service

NCDEX also has a dedicated system of customer support. It can be accessible even after market hours. Hence, the farmers, investors, and traders can take their queries to the customer service team of NCDEX for support.

6. Increase market access for farmers 

NCDEX has increased the market range for farmers. Now they can sell their farm produce even outside the local market. With NCDEX, farmers reach more customers and investors throughout the country. The increased rich is very beneficial from the growth perspective of the agricultural sector.

The Bottom Line

The commodity exchange ncdex is significantly improving India’s agriculture sector. It helps farmers to sell their commodities at market price by discovering the demand in the market. However, they have to make their account on NCDEX for any exchange. 5paisa can help them in creating accounts and exchanging commodities on the NCDEX. Here, they can earn more profit and reach more buyers for their farm commodities.