The National Commodity and Derivatives Exchange Ltd. (NCDEX) recently announced the commencement of trading in rapeseed mustard oilcake futures. The introduction of this contract, will give the mustard value chain participants an effective tool to manage their price risk and get transparent and relevant price signals.
Samir Shah, Managing Director and CEO, NCDEX, said, “It has been our constant endeavour to provide a stronger, broad based product offering, which adds economic value to agri businesses. The addition of Rapeseed Mustard Oilcake to the product basket is aimed at offering an exhaustive and wholesome risk management offering to the market. We are encouraged by the continued support of the industry and look forward to the successful launch of the contract ”
Since mustard seed comprises about 60-65 % of cake, the availability of an intermediary price benchmark helps the entire mustard value chain from farmers, traders to millers, exporters and the entire feed industry which is the biggest demand driver for rapeseed meal. The oilcake, which is produced by crushing of mustard seed is consumed as cattle feed. Deoiled cake (DOC), which is obtained on processing of the oilcake is exported. India, being among the top 3 producers of mustard seed and one of the leading exporters of DOC, the availability of a national price benchmark will help the feed industry.
Rapeseed Mustard seed Oilcake is a compulsory delivery contract and is included in the “List C” commodities, with a transaction charge of Rs. 0.10 per lakh of trade and no risk management fee, making it a highly cost effective contract for the trade.
Rapeseed Mustard seed Oilcake expiring in the months of May, June, July & August 2017 are available for trading since April 24, 2017. The delivery centres are Jaipur, Alwar, Kota and Sri Ganganagar