The National Multi Commodity Exchange of India has decided to reactivate Pepper contract by incorporating the modifications based on recommendations of its Trade Advisory Committee (TAC) on Pepper futures contracts. The changes in contract parameters has been notified on October 17 under intimation to SEBI and the trade is likely to be reactivated from October 28 onwards.
The existing trading and delivery unit of “one tonne” in Pepper will be reduced to “one quintal” which will enable participation by small traders and farmers by incurring lower cost of margins as per TAC recommendation.
TAC has also recommended initially to restrict delivery centre at its basis centre(CWC Kadvanthara in Kochi) as the quality testing process for mineral oil and other parameters would be time consuming. This will be reviewed by the TAC / Exchange for the consideration of additional delivery centres after three months.
NMCE is the only exchange having permission of SEBI, for Pepper contract for trading on continuous basis as of now.