NCDEX Nidhi: FPOs to Distribute Mutual Funds in Rural India

Farmer Producer Organisations (FPOs) are now poised to distribute mutual fund schemes across rural and semi-urban India, an initiative spearheaded by NCDEX through its new ‘NCDEX Nidhi’ platform.

This strategic move aims to significantly broaden the reach of mutual funds and Systematic Investment Plans (SIPs) among farmers.

It provides crucial investment avenues beyond traditional fixed deposits, fostering greater financial inclusion in underserved regions.

NCDEX Nidhi: The Platform and Partners

The NCDEX Nidhi platform secured in-principle approval from SEBI in December 2025, laying the groundwork for its operations.

It currently collaborates with several prominent asset management companies to offer diverse investment options.

• HDFC AMC
• Tata AMC
• Nippon India MF
• Axis MF
• PGIM MF
• ABSL MF
• LIC MF

NCDEX also foresees that this platform could eventually serve as a base for future trading activities in equities and equity derivatives.

Overcoming Distribution Challenges

A significant hurdle identified was the complex financial terminology present in the mandatory NISM certification exam, required for FPOs to become mutual fund distributors.

To address this, NCDEX developed simplified, bilingual training materials.

These resources explain fundamental concepts clearly, making financial education accessible to FPOs.

• Mutual funds
• Net Asset Value (NAV)
• Portfolio ratios

Approximately 30 FPOs have successfully obtained this crucial certification, demonstrating the effectiveness of the tailored training.

Leveraging an Established Network

NCDEX has maintained a long-standing relationship with FPOs, built on years of engagement and trust.

Since 2016, the organisation has provided commodity risk management training to hundreds of FPOs annually across nearly 15 states.

This existing, robust network is now being leveraged to facilitate the efficient distribution of mutual funds in these key regions.