MCX commences futures trading in castor seed December 2006

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MCX (Multi Commodity Exchange of India Ltd.) has commenced futures trading in castor seed December 2006 contract.

 

As per the contract specifications, basis price is ex-Rajkot godown and also within 15 kms limit of Municipal limit. The motor bilty price will be taken from 14 markets of Gujarat namely Rajkot, Ahmedabad, Kadi, Deesa, Patan, Palanpur, Bhabhar, Bhuj, Unjha, Jamnagar, Dhoraji, Morbi, Gondal and Junagadh.

 

Mr. Jignesh Shah, MD & CEO, MCX, said, "India is the major producer of castor seed in the world and also largest exporter of castor oil and its derivatives. India is the benchmark for castor oil and its derivatives in the world market."

 

He also said, "MCX will provide a national level platform for trading and like all other global commodities are trading on MCX the Castor contract on MCX is expected to be used as the global benchmark by the trade. MCX has designed this contract with a view to allow futures trading in castor seed to all the segments of the market."

 

As per the contract specifications, daily price limit is 4 per cent, and Initial margin is 5 per cent and tick size is 50 paise.

 

Trading unit is 5 metric tonne and delivery unit is 10 tonnes. Delivery centres are MCX designated warehouse at Ahmedabad, Kadi, Deesa, Patan, Bhabhar, Bhuj, Rajkot and Unjha within 15 km of the municipal limit.

 

Major growing states of Castor Seeds are Gujarat, Rajasthan, Andhra Pradesh and Maharashtra.

 

Gujarat accounts for nearly 86 per cent of India's castor seed production followed by Andhra Pradesh and Rajasthan. Castor is mainly grown in Mehsana, Banaskantha and Saurashtra/Kutch regions of Gujarat and Nalgonda and Mahboobnagar districts of Andhra Pradesh.

 

 

Sourced From; MCX