The contract is aimed at Kerala producers
It will benefit all spice growing farmers
KOCHI: NCDEX Spot Exchange Limited (NSPOT) has launched compulsory delivery contract of garbled black pepper on its electronic platform.
The delivery centre for the contract will be in Kochi with a minimum trading lot of 1 MT. All trades on the exchange are guaranteed by the exchange for delivery and payments. .
Pepper contracts would be traded between 10 a.m. and 9 p.m., Monday through Friday and from 10 a.m. and 2 p.m. on Saturdays on NSPOT.
The contract is currently aimed at black pepper producers of Kerala, but later Karnataka will also be included.
While the current contract is for garbled black pepper, NSPOT would launch a separate contract of ungarbled pepper later.
The contract would benefit all spice growing farmers of the region, processors, consumers and exporters; especially those located in vicinity of Kochi, the traditional hub for black pepper.
Black pepper sellers would deposit the assayed commodity in NSPOT pre-notified accredited warehouses before putting sell orders.
The buyer would deposit prescribed margin for the relevant type of contract with NSPOT through a member of NSPOT before putting the quotes.
The online buy and sell orders would be matched on real time basis by process of time and price priority and get settled. All trades outstanding at the end of the day would result into delivery obligations on settlement day.
Thus, only those sellers who own the commodity would only be allowed to sell on the platform thus allowing only serious players.
R. Ramasheshan, MD and CEO of NCDEX, said that NCDEX was optimistic about the success of the concept.
After successful launch of sugar in Maharashtra, the move would benefit the farmers of Kerala immensely, he said.
Thus NCDEX Spot Exchange has created real time, online, transparent and vibrant spot platform for black pepper in India.
The contract will allow participants from all over the country to buy black pepper, thereby enabling producers in Kochi to discover best price for their black pepper traded on NSPOT.