INDIA - NCDEX, leading online commodity exchange has launched small grain size sugar futures contract (Sugar S) which will provide an additional risk management tool for the Indian sugar industry.
Trading in sugar s (small) began on March 17, 2015 with six contracts being offered; starting from contracts expiring in April 2015 to September 2015.
Kolhapur is the main delivery center with Belgaum, Solapur, Sangli, Pune, Kolkata and Delhi being the additional delivery centers, NCDEX said in a statement.
Speaking on this development, Samir Shah, MD & CEO, NCDEX said: “India is the world's largest consumer and second largest producer of Sugar and about 60 per cent of total production and consumption is of sugar s grade. Therefore prices of NCDEX Sugar S futures hold significant importance in the global market.”
“NCDEX is an established benchmark for sugar prices and prices of Sugar s will play an important role for entire value chain,” Shah adds.
NCDEX already offers sugar m (medium) futures contracts on its platform. With the addition of this new sugar s contract, a large portion of sugar being produced and traded in India will be represented on the exchange platform.
The additional delivery centres of Delhi and Kolkata have been included to provide an opportunity to the sugar value chain participants in these locations to hedge their physical commitments and to deliver on exchange platform facilitated through COMTRACK, electronic accounting system of the exchange.