Black Pepper Futures Trading started after 4 and half Years
July 25, 2017 at 3:00 PM ,
Rainbow Exports
Futures of Black Pepper Started after 4.5 years
After about four and a half years, Black Pepper futures started again on NCDEX (National Commodity Exchange) and MCX (Multi Commodity Excahnge). The same MCX has been launched for the first time, market regulator SEBI has given its permission on July 21. After that, the futures trading contract for the September and October contracts in NCDEX and MCX commenced. Earlier Black Pepper future trading was done only on NCDEX. Futures trading can be helpful in improving the falling credibility of Indian Black Pepper In the global market
Due to the scams in Black Pepper Futures trading and the quality of black pepper kept in NCDEX warehouses, the futures market commission had banned Its futures trading on May 20. 2013 After the FSSAI investigation revealed that about 6,000 mts of Black pepper stocks in warehouses were found in mineral oil, the futures market had banned its futures trading. The September futures for pepper II NCDEX started at in Rs. Equivalent to Exchange rate of today 64.5 per dollars US$7750 per mt. and Rs US$7590.00 per mt. in October contract. The September contract closed at US$7397 per mt. and October contract was at US$ 7256 per mt. This spot is much lower than the market price. The price of Black Pepper in the spot market is running at US$7789 per mt.
According to Mr. Sameer Shah, Managing Director and CEO of NCDEX, when the Black Pepper futures business was going up four and a half years ago, its exports from India reached the height but tor the past few years the Indian Black Pepper has lost credibility in the global market. This will improve the futures trade in the country, which will be helpful h increase Exports demand.
On the MCX, the kind of pepper started at that time did not tie it. Black pepper in MCX September contract contracted at US$7720 per mt. and October contract was priced at US$7674 per mt, which is trading with the fall. On the very first day of the business, traders said that after four and a half years, futures trading has started, foreign demand is weak, so price have to break.
The demand for Indian pepper remains in most of Asia, America and Europe. According to the Indian Spices Board, in the financial year 2016-1 7, exports of total spices increased by 12 % but Black Pepper exports declined by 37 % in the financial year 2016-17, 1760 mt. of black pepper were exported, while 2810 mt. of exports were exported In 2015-16.
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