NCDEX Considers Relaunch of Potato Futures in India in 2026 as Cold Storage and Logistics Improve

The National Commodity and Derivatives Exchange Ltd. (NCDEX) is exploring the relaunch of potato futures in India  in 2026, citing significant improvements in cold storage infrastructure and logistics that could make the contracts viable this time, said Managing Director and CEO Arun Raste.

Improved Infrastructure Paves Way

Potato futures were first launched in 2013 and traded successfully until 2014, but they struggled with liquidity due to inadequate cold storage and weak delivery logistics. 

Arun Raste, Managing Director and Chief Executive Officer (CEO) of NCDEX:

"When potato was launched earlier, logistics and cold storage were a big issue. That has changed over the last 10–15 years. He noted that the ecosystem required for delivery-based trading has matured significantly over the past decade."

Potatoes Offer Better Trading Potential

Potato is one of India’s largest horticultural crops, alongside onions and tomatoes, known for sharp price volatility. While onion and tomato futures remain challenging due to their short shelf life, potatoes have a longer storage window, making them more suitable for exchange-based trading.

Revisiting Contract Structure

NCDEX is reassessing the contract structure, including delivery locations and basis centres, which were previously concentrated around Agra. The exchange is evaluating West Bengal and Gujarat as potential new basis centres, reflecting shifts in production patterns and the rise of these states as major potato-growing hubs.

Arun Raste:

"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."

Part of Broader Agri-Commodities Strategy

The proposed relaunch of potato futures aligns with NCDEX’s broader plan to strengthen its agri-commodities portfolio while preparing to enter equities and equity derivatives over the next two years. The exchange is reviewing previously traded commodities that were discontinued due to market or regulatory challenges, focusing on those with strong physical-market support.

Risk Management for Farmers and Traders

Potato futures could provide farmers, traders, and processors with a formal risk-management tool in a market prone to sudden price swings, supply gluts, and crashes. NCDEX officials noted that any relaunch would require regulatory approvals and the completion of internal feasibility studies.

Raste said that if suspended agri-commodities are allowed to return to futures trading, contracts like potato could see immediate participation.

Arun Raste:

"Day one itself, these commodities tend to bounce back because the need for price signals is very strong."

This story is based on an exclusive interaction with NCDEX CEO Arun Raste and incorporates updates on infrastructure and production trends that could impact the viability of potato futures in 2026.