NCDEX has launched its upgraded Smart Maize Futures Contract, a move aimed at strengthening price transparency, easing warehousing constraints, and improving quality parity at a time when India’s maize market is being reshaped by rising demand from the ethanol and feed industries. The NCDEX Maize-Feed/Industrial Grade (MAIZE) contract, structured as a 10-metric-tonne trading unit with compulsory delivery, is engineered to widen access and participation across the agricultural value chain. The contract adheres to standardized market parameters, including 14 per cent moisture (with 15 per cent permissible), 2 per cent fungus, and 2 per cent foreign matter, while allowing an overall 8 per cent limit for broken grains, damage, discoloration, and water damage. For Kharif maize, the basis centre is Jalgaon, Maharashtra, for contracts spanning November to August, while Gulabbagh in Bihar serves as the basis centre for Rabi maize from April to October.

Launched on 4 November 2025 in Mumbai, the redesigned maize futures contract reflects NCDEX’s nearly two decades of experience since maize trading began on the platform in 2005. Its smaller 10 MT lot size offers far greater flexibility compared to traditional offline trades that often require transactions of 500 MT or more. The contract is intended to reduce entry barriers, improve hedging efficiency, and deepen market transparency for stakeholders ranging from farmers and FPOs to feed manufacturers, grain processors, and institutional traders. By aligning contract specifications with prevailing market behaviors and regional trade realities, NCDEX aims to create a more reliable and relevant derivative instrument for India’s sixth-largest cereal crop.

Kedar Deshpande, Chief Business Officer, NCDEX, said, “The 10 MT compulsory delivery-based maize contract has been carefully designed to mirror actual market behaviour and ensure robust price discovery. The Final Settlement Price will be determined through a transparent process that factors in Jalgaon nearby mandi-polled prices and warehouse delivery prices, ensuring realistic convergence between spot and futures markets. With standardized 14-2-2 quality norms, well-defined delivery procedures, and participation from key centers the contract provides the feed and industrial sectors with a dependable hedging and procurement tool grounded in real market fundamentals.”

The new contract introduces greater efficiency by standardizing quality under the widely adopted 14-2-2 norm—14 per cent moisture, 2 per cent fungus, and 2 per cent foreign matter—in line with AGMARK benchmarks and industry expectations. The final settlement price is anchored to Jalgaon, with mandi-level inputs from surrounding regions including Jamner, Pachora, Bhusawal, and Alamner, enabling more realistic price discovery reflective of active trade corridors. NCDEX expects this clarity to attract deeper participation while offering both institutional and retail players a sophisticated yet accessible hedging mechanism.

India, currently the world’s sixth-largest maize producer with close to 3 per cent of global output, stands at a pivotal moment in its maize economy. At peak periods, NCDEX maize futures have recorded an Average Daily Turnover of over Rs 20 crore and open interest exceeding 63,000 MT, highlighting robust engagement across the value chain. But evolving warehousing norms, widening regional price variations, and the accelerating impact of ethanol-driven demand required a more modern, market-aligned contract structure. The upgraded Smart Maize Futures Contract positions NCDEX to support this shift, offering a transparent, participant-friendly, and future-ready risk-management platform tailored to the needs of India’s fast-changing maize ecosystem.