Praise you O Mother Annapurna (Goddess of Agriculture, Food and Prosperity); one who protects us from grief and imparts happiness; the giver of wealth & prosperity

The provider of food and nutrition; I pray and request you to bless my India with prosperity forever

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धान्या/Dhaanya is a Sanskrit* word that represents a state of plenty, a bountiful crop,

abundance of food grains, and prosperity. “Dhaanya” highlights the importance of

agriculture in India and represents eleven thousand years of Indian civilization and its re-

emergance in the modern world.

The history of agriculture in India dates back to 9000 B.C. Cultivation of wheat, Jujube and

Barley along with the domestication of cattle started during this period. Since the beginning

of history, agriculture has influenced the life and culture of India. The events and occasions

considered important to agriculture came to be worshipped and celebrated. Agriculture,

thus, represents the culture, civilization and history of India and its people.

Several festivals are celebrated in various parts of India to welcome the monsoon and the

harvest.

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Holi: festival of colors, is celebrated Onam: is a ten day long festival

mainly in northern part of India in late celebrated in Kerala in August to

February or early March. celebrate the harvest of the Paddy crop.

Lohri: also known as the harvest festival Pongal: symbolizes the veneration of

of Punjab, it is celebrated in the month the first harvest and is celebrated in

of January to welcome the arrival of Tamil Nadu in the month of January.

Rabi Crops Vasant Panchami: is celebration of

Bhogali Bihu: is the harvest festival onset of spring and ripening of crops in

celebrated in Assam which marks the the western parts of India in the month

end of harvesting season in mid-January. of January- February.

Today, India ranks second in farm output and agriculture accounts for around one third of

its GDP and employs 52% of the total workforce. Agriculture is still the largest and most

vital economic sector which plays a significant role in the overall economic development

and prosperity of India.

* Sanskrit: Is an ancient Indian language and is the parent of several European, Indian and Asian languages. Sanskrit is

also the first written language of the world.

Dhaanya

Dhaanya aims to provide a reliable benchmark for the traded Agri-commodities in India.

Dhaanya is based on a simple, transparent and easy to understand methodology. The index

features are highlighted below:

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Components: Continuity:

Dhaanya consists of ten liquid Agri- Unlike individual futures contracts,

commodity futures contract traded on Dhaanya is a continuous series enabling

t h e N C D E X ' s p l a t f o r m . T h e the market to better understand the

commodities are selected based on price action and trend over a longer

their economic significance and period time. Dhaanya is a rolling index,

liquidity. that is, periodically futures contract

held in the index are rolled over onto Diversified Basket: next near month contracts as current Commodities from various sub-sectors month contracts approach expiration.are selected to ensure adequate

Index Maintenance: diversification. Dhaanya components

account for over 75% of the agri- Dhaanya is a professionally maintained

trading activity on NCDEX platform. index. Index maintenance committee is

responsible for monitoring the issues Value weighted: related to day-to-day operations of the Dhaanya is a value weighted index. index. Dhaanya components and their Weights are assigned to each weights are re-balanced every three component based on nat ional months based on the production values production and the traded value. Equal and the liquidity situation prevailing in importance [50%-50%] is given to the the market place. both of the parameters to calculate the

final weights of index components.

Reliable prices:

The index is computed real-time, using

the prices of the near month traded

futures contract.

Index components

Figure 1 : Sub-Sectors and components of Dhaanya

Oil Seeds Grains/Pulses Spices Others

Soy BeanMustard Seed

Cotton Seed Cake

WheatChana

TurmericPepperJeera

Guar SeedGur

Cottoncake, 2.56%

Chana, 12.78%

Pepper, 4.69%

Wheat, 27.63%

Jeera, 3.86%RM Seed, 11.09%

Turmeric, 6.88%

Soy Bean, 10.23%

Gur, 3.34%

Guar, 16.91%

1Figure 2: Dhanyaa Component weightings

1 The graph represents the present composition only.

Table 1: Dhaanya Performance

2Index Performance

Annualized returns

Annualized risk

Yearly Return

1 year

2 year

1 Yr Std Dev

2 Yr Std Dev

2009

2010

-9.65 %

19.34 %

11.46 %

13.29 %

47.25 %

-7.29 %

3Figure 3: Dhaanya Historical chart

2 Till October 2010; based on back calculated values3 Chart based on back calculated values