National Multi-Commodity Exchange

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National Multi-Commodity Exchange (NMCE)
Founded 2002
Headquarters Ahmedabad, India
Key People Chairman B.B. Pattanaik
Products Commodity futures contracts

The NMCE is India's third-largest commodities exchange behind the Multi-Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange (NCDEX) and has grown significantly as commodity trading in India has rebounded from the 2008 financial crisis. NMCE is India's top lister of coffee and rubber contracts and seeks to broaden into the currency derivatives and spot markets.


The National Multi Commodity Exchange of India Ltd. (NMCE) was conceived and promoted in 1999 by a group of Indian commodity-based corporations and public agencies, and listed its first contracts on 24 commdities in November 2002.[1] As of October 2009, the NMCE now lists futures contracts on a total of 44 different commodities, ranging copra to menthol, and boasts over 300 trading members.

Recent results

NMCE is currently India's third-largest commodity and derivatives exchange as measured by average daily turnover, behind market dominator MCX and close rival NCDEX. However, NMCE recorded a spectacular year-on-year leap in trading for the first half of 2009 of over 500%, according to India's Economic Times, to 12.8 billion Indian rupees compared to rival NCDEX's more modest 30% increase to 26.3 billion rupees.[2] Market leader MCX recorded 29% growth over the same period to hit average daily turnover of 185.3 billion rupees. Continued recent growth in India's commodity trading means the NMCE's market will soon be joined by a fourth new exchange competitor, currently named the Indian Commodity Exchange (ICEX).[3]

Key people

NMCE Chairman B.B. Pattanaik is also the managing director of exchange member the Central Warehousing Corporation (CWC), one of the NMCE's founders and original promoters and currently its largest stakeholder with 26% of the shares.[4] Pattaniak has served with the CWC since 1979 and has also served as chairman and managing director of National Seeds Corporation and joint commissioner of storage and research at the Indian government's Department of Food & Public Distribution. He graduated from Benares Hindu University with a degree in Zoology.[5]

Latest news

The NMCE, along with nearest competitor the NCDEX, has recently come under pressure to cut its transaction fees following a pre-emptive move by commodity derivates market dominator the MCX.[6] The market leader in mid-October slashed its main turnover-based transaction fee from four Indian rupees (the same as its competitors) to 2.5 rupees and forcing its much smaller rivals to review their own fee structure, which mirrors MCX's previous charges.


  1. First state-of-the art National Multi Commodity Exchange set up by Public Institutions: NMCE. National Multi-Commodity Exchange.
  2. Commexes post 30% growth in H1 revenue. Economic Times (India).
  3. 'A cost-competitive and transparent system will automatically attract customers'. Business Standard (India).
  4. NMCE in talks with foreign cos to sell minority stake. Economic Times (India).
  5. Mr. B.B Pattanaik. Central Warehousing Corporation.
  6. NCDEX and NMCE to review transaction fee. Economic Times (India).