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SEBI regulates India's two largest commodity derivatives exchanges: the MCX (Multi-Commodities Exchange of India) and the NCDEX. The key distinction between them is their product emphasis. MCX covers metals, energy, and bullion contracts, whereas NCDEX is focused on agricultural and agri-linked commodity futures and options.
Both exchanges allow market participants to facilitate transparent price discovery, use standardised contracts, and hedge their positions. Understanding how MCX and NCDEX differ in terms of commodity sectors, liquidity, and market structure enables traders and companies to select the best platform for the sort of commodity exposure they want.
Key Takeaways
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MCX and NCDEX are India’s two major commodity exchanges, both regulated by SEBI, but they differ clearly in product focus and market structure.
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MCX primarily caters to metals, energy, bullion, and related indices, offering higher liquidity in globally linked commodities.
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NCDEX focuses on agricultural and agri-linked commodities, supporting price discovery and hedging aligned with domestic supply cycles.
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NCDEX has updated the specifications for Yellow Peas, effectively removing Gandhidham as a delivery center.
Recent Developments
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MCX Clearing & Trading System: MCX has transitioned to a new in-house clearing corporation (MCXCCL), which is SEBI-registered till July 30, 2028, to strengthen its clearing and settlement operations.
Note: Starting October 2024, MCX switched its technological platform to one developed by Tata Consultancy Services (TCS), upgrading its trading and post-trade infrastructure.
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MCX Product Portfolio (FY 2025-26): MCX continues to offer futures and options in bullion (e.g., gold, silver), energy (crude oil, natural gas), and base metals (aluminium, copper, lead, nickel, zinc), as well as sectoral and composite commodities indexes like the MCX iCOMDEX series.
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NCDEX Product Portfolio (FY 2025-26): NCDEX continues to focus on agricultural commodity futures and options, with key contracts for chana, guar seed, soybean, mustard seed, and a variety of cereals, pulses, oilseeds, fibres, spices, and allied items.
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NCDEX Steel Long Contract: The Steel Long contract is still traded on NCDEX's platform among other agricultural and agri-linked commodities, widening the product mix.
What is Commodity Trading?
Commodity trading refers to the purchase and sale of derivative contracts based on raw materials, including metals, energy products, and agricultural items. These contracts enable market participants to hedge price risk, profit from price swings, and access commodities markets without having to deal with physical goods. Commodity derivatives in India are traded on regulated exchanges that standardise contract specifications and settlement procedures. Some of the major Commodity Exchanges in India include:
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Multi-Commodity Exchange of India (MCX)
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National Commodity and Derivatives Exchange (NCDEX)
Let us focus on the two most commonly used exchanges – MCX & NCDEX
Read More: About Commodity Trading
Multi-Commodity Exchange of India (MCX)
Multi-Commodity Exchange of India Ltd. (MCX) started operations in November 2003 and is regulated by the Securities and Exchange Board of India (SEBI). MCX is India’s first listed exchange. It offers commodity options contracts, bullion index futures, and base metals index futures contracts.
Also Read: What is MCX?
National Commodity & Derivatives Exchange Ltd. (NCDEX)
National Commodity & Derivatives Exchange Limited (NCDEX) is a multi-commodity exchange that focuses on revolutionizing India’s agricultural sector. It offers a diverse range of products such as commodity futures, options in goods, and index futures. Due to this, NCDEX plays an important role in providing opportunities that cater to the needs of various sets of participants in the agriculture value chain. NCDEX commenced operations in December 2003.
Also Read: What is NCDEX?
Comparison Between MCX and NCDEX
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Features |
Multi Commodity Exchange of India Ltd |
National Commodity & Derivatives Exchange Ltd |
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Established in |
November 2003 |
April 2003 (operations commenced December 2003) |
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Key Highlights |
MCX has many firsts to its credit, some of which are as below:
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Focus |
MCX includes industrial metals, precious metals (bullion), and oil futures. |
NCDEX has clear leadership in the agriculture trading segment. |
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Types of commodities traded |
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Commodities Traded |
40 contracts (bullion, metals, energy, select agri) |
34 agri-based contracts (cereals, oils, oilseeds, spices) |
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Number of Clearing Banks |
16 |
15 |
Common Factors Between MCX and NCDEX
Since both these exchanges are related to commodity trading, there are also many similarities between them, such as:
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Both are regulated by SEBI.
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Both are headquartered in Mumbai.
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Both operate from Monday to Friday and offer online trading platforms for investors.
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Both deal in conventional contracts, which ensure that the commodity quality, lot size, and expiration dates are all standardised.
Types of Commodities Traded on MCX
MCX primarily offers trading in the following types of commodity derivative contracts:
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Bullion
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Industrial metals
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Energy
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Agricultural commodities
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Indices of the above contracts
MCX was the first exchange in India to introduce commodity options and futures contracts on bullion, base metals, and energy indices.
The exchange also maintains a benchmark index series that tracks real-time commodity futures price movements. This series includes a composite index along with:
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Base metal index
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Bullion index
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Energy index
Additionally, MCX tracks single-commodity indices such as:
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Gold
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Silver
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Aluminium
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Copper
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Lead
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Zinc
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Crude oil
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Natural gas
Key Features & Advantages of MCX
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Wide range of commodities covering bullion, industrial metals, energy products, and select agricultural commodities.
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An electronic trading system designed for fast order execution and high system availability.
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real-time price discovery that supports transparent and efficient trading.
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strong market participation, which supports liquidity and smoother entry and exit.
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standardised contracts that ensure uniform quality, lot size, and settlement norms.
Types of Commodities Traded on NCDEX
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Cereals and pulses, including wheat, rice, chana, moong, maize, and barley.
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Oil and oilseeds such as soybean, mustard seed, castor seed, and refined oils.
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Fibres, including cotton and other agri-based fibres.
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Soft commodities such as sugar and select plantation products.
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Spices include jeera, turmeric, coriander, and pepper.
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Guar complex products such as guar seed and guar gum.
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Steel long, a metal-linked product introduced to broaden the product mix.
Key Features & Advantages of NCDEX
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Strong focus on agricultural commodities, supporting farmers, processors, traders, and institutional participants.
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An electronic trading platform that enables transparent price discovery across contracts.
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Contracts are designed around standard quality specifications, lot sizes, and delivery norms.
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Alignment with agricultural cycles, making pricing more reflective of domestic supply and demand.
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Delivery-based settlement structure that strengthens the linkage between futures and physical markets.
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Participation from a wide range of stakeholders helps improve depth and reliability in agri pricing.
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A risk management framework that supports hedging against price volatility in agricultural commodities.
Some Related Terms
As you get more interested in commodity trading, and MCX and NCDEX, you will also come across some terms, such as below:
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Mandi: A regulated physical market
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Order entry: This refers to the entering of orders given by customers into the computer terminals located at the premises of the Trading Members.
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Contract expiry month: This is the specific month in which delivery may take place under the terms of a futures contract.
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Mark to market settlement: All the open positions are marked to market every day, based on the Daily Settlement Price for each contract.
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Physical delivery: This refers to the transfer of a physical commodity from the client holding a short position in a futures contract to the buyer of a futures contract, as per the detailed procedure laid down by the commodity exchange.
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Base price: On the introduction of new contracts, the base price would be the previous day’s closing price of the underlying commodity in the prevailing spot markets. On all subsequent trading days, it would be the daily settlement price of the futures contract on the previous trading day.
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Trading cycle: The period, as notified by the Exchange from time to time, during which the Derivatives Contract will be available for trading.
Conclusion
MCX commodity and NCDEX commodity markets together form the backbone of commodity derivatives trading in India. While MCX commodity trading primarily centres on metals, energy, and bullion, NCDEX commodity trading focuses on agricultural and agri-linked products. Both exchanges operate within a regulated framework, offering standardised contracts, transparent pricing, and efficient risk management tools.
Understanding the role and product focus of each exchange helps traders and investors choose the right platform based on their trading objectives, risk appetite, and exposure needs. A clear distinction between MCX and NCDEX supports informed participation and better decision-making in commodity trading.
