The Hindu Business Line : NMCE sees higher volumes in castor trade

NATIONAL Multi-Commodity Exchange (NMCE) feels that futures trading volumes in castorseed will rise rapidly in the coming months when the new crop is harvested.

NMCE had recently started futures contracts in castor, in which 10,000-12,000 tonnes trading occurs across different exchanges. The total size of the castor crop in India varies between eight and nine lakh tonnes per annum.

With greater participation, NMCE itself expects trading through the exchange rise to 50,000 tonnes per day, NMCE Vice-President (Market Development), Mr Dinesh Shukla, told Business Line on Thursday.

"We have increased the lot size to 10 tonnes for the January, February and March contracts as against one tonne as of now. We are confident that there will be greater participation in trading, especially from south India, and volumes will rise," he said.

Mr Shukla said that with national commodity exchanges launching futures trading in castor, there will be lesser scope for market manipulation and there will be a better price discovery.

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