Mumbai: The National Commodity and Derivatives Exchange (NCDEX) will launch non-dematerialised commodity trading, probably by December this year. The non-demat trading format, which would be less expensive, will be rolled out by 31 December, NCDEX managing director and CEO R Ramaseshan, said.

Under the existing electronic trading using the dematerialised format, traders have to pay Rs600 for each contract. This eats into trading margins, making it unattractive for traders, he said.

The exchange is developing a new warehouse management system which will be introduced in two months. The software is ready and the trials are going on, he said.

About 98 per cent of the trading volumes in NCDEX is in agri-products. However, the exchange is planning to enter trading in non-agricultural commodities as well following restrictions in futures trading in agricultural commodities.

The NCDEX Spot Exchange, a wholly owned subsidiary of NCDEX, has already launched steel contract, which was attracting a volume of Rs70 lakh to Rs1 crore crore a day. More commodities are planned to be added as the spot market expands, he said.

''The exchange has not yet identified other products, but exercise is on to open to agricultural products also,'' he said.

The daily turnover on the NCDEX stood at Rs1,836 crore (one-way) with 472 members (1,697 users) participating in trading on 22 August.

Among the 53,840 plus trades, active trades were more among others rape mustard seed, guar seed, soyabean, turmeric and jeera.

The previous day, 475 member (273 users) participated in trading and put through more than 57,108 trades. The volume of trading till 11.30 pm was Rs2,088 crore (one-way). Active trades were noted among rape mustard seed, guar seed, soyabean, turmeric and jeera.