The National Commodity and. Derivatives Exchange will re-launch the ‘Natural Whitish Sesame seeds’ (‘til’) futures contract, adding another product to its oilseeds portfolio.

The sesame seeds futures contract will be made available for trading from Wednesday with Unjha (Gujarat) as the basis centre and Rajkot as the additional delivery centre.

Contracts expiring in October, November and December will be available for trading.

Vijay Kumar, Managing Director, NCDEX, said India is a major exporter of sesame seeds and the new contract will help boost farmers profit by widening the country’s export basket. The diversification of the oilseeds contracts will enable value chain participants to foray into an additional asset for trading, he said.

India is the third largest producer of sesame seeds. The country has a global market share of 12 per cent of the sesame seeds trade.

The relaunch of NCDEX’s sesame seed futures contract could create a global benchmark for price indicators, not only domestic but also international participants.

Sesame seed exports between last April and March 2020 was 282,236 tonnes, valued at ₹3,723 crore.

The average market size of sesame in India in the last five year has been ₹7,280 crore. Madhya Pradesh and Chhattisgarh are the leading producers of sesame seeds, followed by Uttar Pradesh, Uttarakhand, Rajasthan and Gujarat, respectively.

Kapil Dev, Head of Business & Products, NCDEX, said

the stakeholders in the sesame value chain, which includes farmers, millers, traders and exporters, are often exposed to price risks. With the availability of sesame seeds futures contract, VCPs will be in a better position to make informed decisions while trading.