National Commodity and Derivatives Exchange (NCDEX) on Wednesday launched futures contracts in Isabgol Seed and has made Unjha in Gujarat the delivery centre.
The contracts are available for trading in four months from May to August 2023, and the exchange will add new contracts, as per the contract launch calendar, NCDEX said in a statement. “Isabgol is playing an important role in India’s agricultural export basket with increasing overseas shipments. It was necessary to have an equally robust mechanism for exporters and traders to manage their price risks in an overall volatile environment of this agricultural produce,” NCDEX Chief Business Officer Kapil Dev said.
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Isabgol seed contract will be a compulsory delivery-based contract and traded at ex-warehouse prices, Unjha basis centre exclusive of GST and it will have a daily price limit of 6 per cent, the statement said. India produces 1,50,000 to 2,00,000 tonnes of Isabgol seeds annually, contributing 80 per cent of global Isabgol seeds production, NCDEX Said. Gujarat accounts for 80 per cent of the country’s Isabgol output, followed by Rajasthan and Madhya Pradesh. Although the Indian Isabgol industry is yet to get organised, market sources assume India is the largest exporter of the Isabgol husk, with a contribution of more than 85 per cent of the total global consumption.
However, despite having a near-monopoly in this medicinal agricultural produce, Indian growers and exporters are often exposed to volatility in prices due to various internal and external factors, the statement said.