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BSE delivers 16,000 kgs of Almond in shell in world’s only such futures contract

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BSE, the oldest exchange of Asia, has announced the maiden delivery of almond in shell futures at the its designated warehouse in Navi Mumbai. Despite the lock-down, BSE said in a statement it successfully completed the delivery of 16,000 kgs of almond in shell futures.

BSE’s almond in shell Futures Contracts was introduced on June 22, 2020, is unique. BSE is the only platform in the world to offer physical market participants, an avenue to hedge their price risks and take deliveries.

The contract trading unit is 1,000 kgs. The maximum order size is 20,000 kgs deliverable at Navi Mumbai. The almond contracts will take the reference rates of Navi Mumbai’s APMC market.

Sameer Patil, chief business officer, BSE said, “For the first time, almonds in shell future were priced and delivered on a forward looking, market driven basis based on the BSE futures, offering stakeholders greater transparency and certainty.”

“These contracts bring in more transparency, liquidity, ease of trade for buyers and sellers alike, and reinforces BSE's commitment to widen and deepen the commodity derivatives market in India,” he added.

BSE’s almond in shell prices are widely used as reference prices for physical market transactions, and helping industry stakeholders with better price marking and quality benchmarking, BSE said.

The exchange is also expanding ties with various physical market participants for strengthening of warehouses and other support infrastructure, which is essential for grading, sorting and quality certification, it said.

By reaching out to more participants and spreading awareness of the benefits of these contracts, BSE is planning to increase deliveries in the future.

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Printable version | May 7, 2021 7:11:08 AM | https://www.thehindu.com/business/markets/bse-delivers-16000-kgs-of-almond-in-shell-in-worlds-only-such-futures-contract/article32157694.ece

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