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Informist, Friday, Dec. 19, 2025

By Pallavi Singhal

NEW DELHI – The National Commodity and Derivatives Exchange Ltd. is mulling over relaunching potato futures in 2026, betting that significant improvements in cold storage capacity and logistics over the past decade could make the contract viable this time, Managing Director and Chief Executive Officer Arun Raste told Informist in an exclusive telephonic interaction.

Potato futures were listed on exchange in 2013 and successfully traded till 2014, but failed to sustain liquidity due to infrastructure constraints, including inadequate cold storage and weak delivery logistics. "When potato was launched earlier, logistics and cold storage were a big issue. That has changed over the last 10–15 years," Raste said, adding that the ecosystem required for delivery-based trading has matured considerably.

Potato is among India's largest horticultural crops and along with onion and tomato is known for sharp price volatility. While futures contracts in tomato and onion remain unviable due to their limited shelf life, potatoes offer a relatively longer storage window, making them more suitable for exchange-based trading, Raste said.

NCDEX is reassessing the contract structure, including delivery locations and basis centres, which were earlier concentrated around Agra. The exchange is now evaluating West Bengal and Gujarat as alternate basis centres, reflecting changes in production patterns and the emergence of these states as major potato-growing hubs, Raste said.

"Today, there is a good possibility that if we launch now, we will have a better basis centre and stronger logistical and cold storage support," Raste said. "The ecosystem has improved and that gives us confidence to study potato again."

The proposed relaunch is part of NCDEX's broader plan to strengthen its agri-commodities portfolio even as it prepares to enter equities and equity derivatives market over the next two years. The exchange has been reviewing commodities that were traded earlier but discontinued due to regulatory or market challenges, with a focus on those that now have stronger physical-market backing.

Potato futures could also provide farmers, traders, and processors with a formal risk-management tool in a market that is prone to frequent supply gluts and price crashes, followed by sudden spikes. NCDEX officials said any relaunch would be subject to regulatory approvals and the outcome of ongoing internal feasibility studies.

Raste said if suspended agri-commodities are allowed to return to futures trading, contracts such as potato could see immediate participation. "Day one itself, these commodities tend to bounce back because the need for price signals is very strong," he said.  End

Edited by Akul Nishant Akhoury

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