ICEX, the commodity derivative exchange, intends to relaunch black pepper contracts by next month. Cardamom contracts are expected later.

According to Sanjit Prasad, MD & CEO, there will be three black pepper contracts on a daily basis in 550 gl (gramme/litre) quantity. Physical market participants have suggested some modifications in the trading lot and delivery unit of the black pepper contract from the existing 100 kg to one tonne. The relaunch is expected to enable farmers get advance price signal, bargaining power and the benefit of advance sale, he said.

Speaking to BusinessLine on the sidelines of an awareness workshop, he said the rubber contract post merger of NMCE has received a boost with consistent increase in volumes. The daily turnover is close to ₹5 crore. The exchange has started a drive to educate and create awareness among farmers and market intermediaries on the advantages of future trading in rubber and black pepper.

“We are strengthening the trade of rubber and black pepper post amalgamation of NMCE with ICEX”, he said adding that the exchange had already held meetings with physical market participants in Kerala. There will be more such programmes across the State to educate farmers on the commodity market and gain a better understanding on futures trading.

With more than 130 members, the exchange has clocked a daily turnover of ₹130 crore. Of this, diamond trading contributes ₹100 crore followed by steel with ₹25 crore. ICEX is the first commodity exchange in the world to launch diamond derivative trading last year, he added.