NCDEX to launch ‘pepper futures’ soon

The National Commodity and Derivatives Exchange is preparing to launch pepper futures contracts and expand its commodity offerings as part of efforts to strengthen its market presence, especially in southern India. NCDEX MD & CEO Arun Raste said the exchange plans to launch pepper futures within a month after receiving approval from the SEBI. The exchange has also finalised a warehouse in Kerala, which will serve as the base delivery centre for the contracts.

 NCDEX had introduced pepper futures nearly 10-15 years ago but later discontinued them due to quality disputes and legal issues. Raste said all but one court case linked to the earlier contracts have now been resolved.

  He said India remains one of the world’s largest pepper producers but does not influence global pricing, with Vietnam currently acting as the benchmark market. Raste said NCDEX aims to bring price discovery back to India through the relaunch of pepper futures. The move is also expected to strengthen the exchange’s footprint in southern India, where pepper and other spice markets remain active.

—Informist