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Informist, Friday, Jul 19, 2024

 

--NCDEX officials: SEBI okays resuming futures trade in yellow peas 

--CONTEXT: NCDEX officials speak on sidelines of a conference

--NCDEX officials: May announce launch of yellow peas futures next week

--NCDEX officials: Yellow peas futures to have compulsory delivery 

--NCDEX officials: Kanpur to be delivery centre for yellow peas

 

By Afra Abubacker

 

NEW DELHI – The Securities and Exchange Board of India has approved the relaunch of yellow peas futures on the National Commodity & Derivatives Exchange, two officials with the exchange told Informist. The contract was last traded on the exchange in 2009, according to an official.

The exchange withdrew the contract due to liquidity challenges. It hopes the contract will gain traction this time due to increased imports and growing consumption. "Fifteen years before, India was very different from what it is now," another official said.

 

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. This helped cap the high prices of chana and tur. Yellow peas is an affordable substitute for chana.

 

In 2023-24 (Apr-Mar), India imported around 1.2 mln tn of yellow peas, sharply up from 539 mln tn in the previous year. So far in the current year, India has imported 686,730 tn of yellow peas.

"...because it (yellow peas) is imported, it is a decent sized commodity. The value chain is aware about the contract, since they have traded in pulses. They have a sense of acceptability among the value chain," an NCDEX official said.

 

Previously, many pulses like chana, tur, urad and yellow peas were traded on NCDEX. The exchange hopes to attract participation across the value chain including importers, domestic traders, farmers, processors, and millers.

 

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, SEBI extended this ban till December 20, 2024.

On the relaunch of yellow peas, NCDEX officials said that the exchange is yet to finalise the details of the contract. The decision is likely to be taken next week.

 

The contract would be on a compulsory delivery basis and won't have a cash-settlement option, an official said. "Kanpur is the delivery centre. As of now there is no additional delivery centre," he added.

 

The minimum unit of trading would be 10 tn and prices would be quoted rupees per 100 kg, he added.  End

 

Edited by Ashish Shirke

 

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