NMCE to launch futures in turmeric in 4 series

Ahmedabad, June 6: The National Multi-Commodity Exchange (NMCE) is scheduled to launch futures trading in turmeric of the 'Erode' variety on the exchange's electronic platform on Friday.

To begin with, NMCE will initially launch four series, to expire in August, September, October and November respectively this year.

India produces about five lakh tonnes of turmeric annually, Andhra Pradesh and Tamil Nadu being the major producing states, the Erode variety having a major share in the region.

India alone contributes to 80 per cent of global production and is the largest consumer too. The country's exports hovers around 35,000 tonnes. Turmeric finds medicinal use for value-addition.

As per the approval of the regulator, Forward Markets Commission (FMC), contracts will open on the 10th day of the month (in case it is non-trading day, on the previous working day).

Squaring up of positions will be permitted between 17th and 20th of the delivery month as the contracts expire on 20th of respective month.

No fresh positions will be allowed during these days. And, if the 20th day of the delivery month happens to be holiday, delivery will be due the previous day.

The Central Warehouse Corporation (CWC) warehouse at Erode (Basis) will be the delivery centre. Sellers can tender warehouse receipt for settlement at the closing price of the previous day.

The compulsory delivery contract would ensure the limit at 3,000 tonnes for clients and 9,000 tonnes for members.

The trading unit is 10 MT (Metric Tonne). However, the price has been quoted in Rs per quintal (100 kg), including VAT, ex-CWC Erode warehouse.

The daily price limit will be four per cent, which might be extended by two per cent on either side, in case it touches the limit, but no trade would be permitted beyond six per cent on either side of the previous day's closing price.

FMC has also listed certain quality specifications, such as it should be farmer polished turmeric fingers. At least 75 per cent of the fingers should be three cm or above, should be free from infestation, fungus and any artificially coloured dyes or chemicals.

The maximum permissible limit for moisture is 12 per cent, bulbs 3.0 per cent, broken fingers 3.0 per cent, inferior quality turmeric 1.5 per cent, while dirt, earth and stones should not exceed 0.75 per cent of the total quantity. .

Damage due to moisture (lokhandi) or over-boiling (kadh) should not exceed 1.2 per cent and that due to un-boiled or less-boiled should not be above 0.3 per cent.

UNI