MUMBAI(Commodity Online): India’s National Commodity&Derivatives Exchange(NCDEX) will kick start forward trading in maize and sugar contracts and resume futures trading in pepper. The forward trading in sugar and maize are slated to begin from September 25 and pepper trading will begin in January.
The presence of mineral oil in pepper stocks has impacted its trading aspects and the issue has been on since 2012. But NCDEX is planning to implement measures to remove the impurities from pepper stocks.
“We will launch pepper contract soon after we solve the controversy surrounding 6,400 tonnes of pepper kept in our warehouses in Kerala. We will have the pepper processed and cleaned it up. Then, as soon as possible between January and February, we will resume pepper futures,” Samir Shah, Managing Director and Chief Executive Office, NCDEX.
Forward trading in Maize, Sugar
“We are starting in maize and sugar because we have ample experience of having made procurement for various State Governments in these commodities,” Shah said.
“In forward trading, the quality, grade and other norms, including delivery, are decided between the seller and the buyer while signing a contract. Such a facility does not exist in futures, which is pre-determined. We are launching forward trading to attract wider participation,” he said.
Shah also said NCDEX trading volume has increased 31 per cent during the June quarter compared with the previous quarter. According to the Forward Markets Commission (FMC), the volume of trade on all commodity exchanges dropped to ₹24.46 lakh crore during April 1-August 30 compared with ₹58.98 lakh crore in the same period a year ago.
– Commodity Online