Nafed has been undertaking futures trading activities through National Exchanges(NCDEX,MCX and NMCE). NAFED's prime objective of entering futures trading is to undertake physical delivery,to hedge the price risk and market risk associated with physical stock of various commodities store in warehouse and also to stabilize the prices of agricultural commodities in markets across India, so that farmers can get better and fair price for their produce.

The future tarading activities were initially commenced by our Cochin an Calicut branches in commodities like Pepper,Rubber,and Cardmom. Subsequently,9 more branches viz. Chennai, Hyderabad, Kolkata, Indore, Mumbai, Pune, Ahmedabad, chandigarh, Jaipur and NAFED HO also initiated Future Trading activitis in several other agricultural commodities viz.Rubber,Pepper,Turmeric, Chillies, Soyabean, Mustard seed, Mntha, Potato, Jeera etc.The Branches undertake futures trading in commodities of which they are having the stock so that if market goes unfavorable,the concerned branches can arrange physical delivery.NAFED is makings efforts to get the quality parameters modified a fixed by the commodity exchanges on a more realistic market oriented basis, so that futures trading can best be utilized as a risk management and price discovery tool by NAFED to percolate the benefits to the farmers.In the Financial Year 2009-10,the turnover achieved in Futures Trading business was Rs.72.48 crores.

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