Call option introduced for vanilla

By Staff
|
Google Oneindia News

Kochi, May 18 (UNI) Vanilla India Producer Company Ltd (Vanilco), floated by over 2500 farmers, has introduced call option facility for the buyers to offload its existing stock of 30 tonnes of cured beans.

Vanilco managing director Paul Jose told a press conference here today that it was for the first time in the world such A facility was introduced to buyers.

As per the facility, aimed mainly at the global market, the buyers can buy vanilla at specific price on a future day on payment of a fixed premium.

The premium is paid on the basis of the spot price of vanilla.

It depends on time period, interest and volatality. The buyer has the right but not the obligation to take delivery at the strike price,'' he said.

Initially this European style call option was being introduced for three months and would be extended upto one year later, he added.

Vanilco, floated to stem the prices of vanilla by procuring beans directly from the farmers, has 17 value added products besides supplying beans to ice-cream companies like Amul and Milma, its director Saju Paul said.

The company was also holding talks with commodity exchanges to enter the futures market by next March, he said.

UNI JA VV SS1519

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