NCDEX launches Dhaanya-benchmark index for agri-futures market

It is a value weighted index,based upon a simple,transparent and easy to understand methodology,Ramaseshan said,adding it has taken 10 months to work on this index.

Dhaanya is a Sanskrit word,symbolizes prosperity and a bountiful crop. The index is in many ways reflective of this and will serve as a reliable gauge of the Indian agri-futures market,he said.

To ensure proper diversification,index components are selected from various sub-sectors like oilseeds,grains,spices and other crops of national importance.

Dhaanya is computed using the prices of the near month (i.e. closest expiry) futures contracts. It is a rolling index meaning that the futures contracts held in the index are rolled over to subsequent month as current month contracts approach expiration.

“Dhaanya will provide a vital source of information to value-chain participants,market participants,economists,statisticians,research agencies and agri insurance providers,” NCDEX’s Chief Business Officer,Vijay Kumar said.

Dhaanya will be computed real-time on all trading days during the market trading hours between 10 am to 5 pm. NCDEX today offers futures trading in 47 commodities in agriculture,energy,metals,plastics and carbon credits.