National Commodity & Derivatives Exchange (NCDEX) today, April 19, launched futures contracts in Isabgol Seed and has made Unjha in Gujarat the delivery centre.
The contracts go on sale in four months, from May to August 2023, and the exchange will continue to add more contracts in accordance with the contract launch calendar, according to a statement from NCDEX.
With rising shipments abroad, isabgol is playing a significant part in India's agricultural export basket. said NCDEX Chief Business Officer Kapil Dev, it was essential to create an equally strong mechanism for exporters and merchants to control their price risks in the generally unstable environment of this agricultural item.
According to the release, the isabgol seed contract will have a daily price cap of 6%, be a mandatory delivery-based contract, and be traded at ex-warehouse prices with a Unjha basis centre exclusive of GST.
According to NCDEX, India produces between 1.5 and 2 million tonnes of Isabgol seeds annually, or 80% of the world's total production. Gujarat produces 80% of the nation's isabgol, followed by Madhya Pradesh and Rajasthan. Despite the fact that the Indian Isabgol sector is still unorganised, market sources estimate that India contributes more than 85% of the world's consumption of Isabgol husk.
Despite having a near-monopoly in this therapeutic agricultural output, the statement added Indian growers and exporters are frequently susceptible to price fluctuation due to a variety of internal and external causes.
NSE to introduce crude, natural gas futures contracts from May 15
Reforms initiated by defence ministry further stregnthen Ease Of Doing Business