The Hindu Business Line : NCDEX to re-launch Robusta contracts

What's on the cards
NCDEX to reduce lot size to 1.5 tonnes from the earlier 9 tonnes.
It is in talks with curing houses for assaying, warehousing the commodity.

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Bangalore, Feb. 23 National Commodity and Derivative Exchange Ltd (NCDEX) plans to re-launch the robusta contracts by end-March with new quality specifications and mechanism for staggered delivery.

Mr N.S. Rathore, Vice-President, NCDEX, said the exchanges product development committee is expected to meet in Bangalore on March 2 to approve the new contracts — robusta Cherry AB.

After getting the product development committee's approval we would be seeking the Forwards Markets Commission nod for the contract, he said.

NCDEX had launched the coffee futures contract in mid-2005. The exchange did not see any major volumes and was forced to stop trading after it faced issues relating to the quality of coffee traded through its platform, delivery, warehousing and lack of awareness among growers, Mr Rathore said. NCDEX's earlier contract was robusta cherry bulk.

To enable the small growers to participate in the trading, NCDEX has reduced the lot size to 1.5 tonnes from the earlier nine tonnes, Mr Rathore said.

Further, in a bid to systematise the delivery of the commodity, NCDEX has introduced an option of staggered delivery, wherein the delivery could be taken in a staggered manner to meet one's export requirement.

A staggered delivery would be flexible for both the buyers and sellers, he said.

The exchange was also in talks with curing houses in both Karnataka and Kerala for assaying and warehousing the commodity. "We expect to tie-up with the curing houses soon in Kushalnagar, Hassan, Bangalore, Kalpeta and Chikmagalur," Mr Rathore said.

With the re-launched robusta contract, NCDEX is eyeing a daily turnover of between Rs 100-200 crore in two months, Mr Rathore said. In the second phase, the exchange expects to re-launch its arabica contracts, he said.

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