Informist, Tuesday, Sep 17, 2024

--NCDEX MD Raste: To launch yellow pea futures by first week of Oct
--CONTEXT: NCDEX MD Raste speaking on sidelines of Wheat Summit

By Pallavi Singhal and J. Navya Sruthi

MUMBAI – National Commodity & Derivatives Exchange will launch trading in yellow pea futures in the first week of October, Managing Director Arun Raste said today. Any trade on the exchange will act as a reference point, Raste told Informist on the sidelines of the two-day The Wheat Summit being held here.

Informist had exclusively reported in July that the Securities and Exchange Board of India has approved the relaunch of yellow pea futures on the NCDEX.

Yellow pea futures were last traded in 2009, after which NCDEX withdrew the contract due to liquidity challenges. The exchange hopes the contract will gain traction this time due to increased imports and growing consumption of yellow peas.

"The biggest problem in agri-commodities is you won't have a national reference point. Prices in Banaras and prices in Gujarat would be very different and farmers only have exposure to a 10-15 km area. This (trade on NCDEX) would act as a national reference price point," Raste said.

The exchange hopes to attract participation across the value chain including importers, domestic traders, farmers, processors, and millers.

In December, the government exempted yellow peas from import duty till Mar 31 and later till Jun 30. In May the government extended the duty waiver for shipments covered by bill of entry issued on or before Oct 31 after production of tur fell and availability of chana also became a matter of concern. On Friday, the government further extended the order till the end of the year to contain the rise in chana prices. Yellow peas are an affordable substitute for chana.

Previously, many pulses like chana, tur, urad and yellow peas were traded on NCDEX. In 2021, SEBI suspended for one year futures and options trading in a host of agricultural commodities such as wheat, chana, mustard seed, crude palm oil, moong, paddy (Basmati), soybean and its derivatives. Last year, the market regulator extended this ban till December 20, 2024. End

Edited by Ashish Shirke

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