The Hindu : Business : Futures trading in Robusta coffee starts

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Wednesday, Sep 10, 2008
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Futures trading in Robusta coffee starts

Special Correspondent

FMC Chairman did the inaugural trade
Exporters can cover their risk exposure

NEW DELHI: National Multi-Commodity Exchange of India (NMCE) on Tuesday announced the launch of futures trading in Robusta coffee.

The announcement was made by Anil Mishra, CEO, NMCE, at a function here. The launch ceremony was inaugurated by B. C. Khatua, Chairman, Forward Markets Commission (FMC) who did the inaugural trade.

Coffee has significant economic and social relevance in India. Globally, coffee is the second highest traded commodity after crude, while India is the 6th largest coffee producer in the world. The NMCE coffee contract specification has changed from Robusta Cherry AB to Robusta Cherry EP Bulk.

This has been done to ensure larger participation from all stakeholders, as this quality is largely produced in both Karnataka and Kerala and is used as raw produce for further processing.

NMCE is the only national commodity exchange to launch this contract.

Mr. Khatua said since NMCE had designed this contract after a series of talks with planters, traders, processors, exporters and experts from the Coffee Board, it was believed that maximum stakeholders, big and small, should be able to participate. Coffee will be traded on the NMCE platform during domestic and global session up to 10 p.m. so that Indian exporters, who make export trade and commitments late in the evening, are able to hedge their commitment on a real-time basis on the NMCE.

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