NMCE re-launches futures trading in coffee

NMCE re-launches futures trading in coffee
PTI
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First Published: Tue, Sep 09 2008. 05 19 PM IST
Updated: Tue, Sep 09 2008. 05 19 PM IST
New Delhi: National Multi-Commodity Exchange of India today re-launched futures trading in coffee robusta.
Forward Markets Commission Chairman B C Khatua launched the trading in Bangalore, NMCE said in a release today.
About 180 tonnes of coffee were traded on the exchange till 3 pm on p September.
Earlier, the exchange had started futures trading in coffee in 2005. However, it was discontinued after five months due to some problems witnessed in the contracts.
The exchange, now, has decided to re-position coffee after seeing the potential in the global commodity market.
The NMCE coffee specification has changed from Robusta Cherry AB to Robusta Cherry EP Bulk. The contracts will be bi-monthly and available for months of November 2008 and January 2009, it added.
As per the contract specifications, daily price limit is 2% and the initial margin is 5%. The trading delivery unit is 1.5 metric tonne or 25 bags with net weight of 60 kg each, the release said.
The delivery centres would be NMCE designated warehouses in Karnataka and Kerala.
“India produces about 2.9 lakh tonnes of coffee annually, which constitutes 1 lakh tonnes of Arabica and 1.9 lakh tonnes of Robusta,” NMCE Director Sudip Bandyppadhyay said.
He said, more than 70% of the coffee produced in the country is exported to over 50 countries amounting to about Rs1,907 crore.
Khatua said, “Since NMCE has designed this contract after a series of talks with planters, traders, processors, exporters and experts from the Coffee Board, we believe that maximum stakeholders, big and small, should be able to participate.
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First Published: Tue, Sep 09 2008. 05 19 PM IST