It was launched through a Geojit terminal, which would also provide live prices besides international, regional and local market information on NMCE, officials said.
Kailash Gupta, managing director of Ahmedabad-based NMCE, said daily volume of online futures trading in coffee is expected to be more than that in pepper, which is at Rs 100 crore (Rs 1 billion) presently.
C J George, managing director of Geojit, a financial and commodity markets intermediary, said terminals would be set up at 100 locations in the country in the next one week.
Futures trading in coffee was started with three contracts for May, July and September deliveries. Central Warehousing Corporation's Bangalore and Kozhikode depots would serve as delivery centres, he added.
India, which produces about three lakh tonnes of coffee annually, is among the world's top ten producers of the commodity.
Karnataka accounts for 53 per cent of the country's coffee land holding and around 60 per cent of the total production, with Bangalore being the capital of the coffee markets.