The National Multi Commodity Exchange of India, based on the recommendations of its Trade Advisory Committee (TAC) on pepper, has incorporated modification in its pepper futures contracts, and is going to reactivate pepper contract.

NMCE was the first national level exchange, which provided its electronic trading platform in various commodities including pepper and rubber. As of now, NMCE is the only exchange having permission of SEBI, for pepper contract for trading on continuous basis.

As per TAC recommendation, existing trading and delivery unit of “one tonne” is being reduced to “one quintal”, enabling participation by small traders and farmers by incurring lower cost of margins.

Since, quality testing process for mineral oil and other parameters would be time consuming, it is recommended initially to restrict delivery centre at its basis centre i.e. CWC Kadvanthara in Kochi, which after three months, shall be reviewed by the TAC / Exchange for the consideration of additional delivery centres.

NMCE has notified the changes in contract parameters on October 17 under intimation to SEBI, which may be reactivated from October 28 onwards. Traders are quite optimistic with the changed parameters and expecting that with the improved provisions of contract; most of the concerns with regard to quality, etc are addressed.

Members of the exchange have geared up their network for reactivating their pepper trade/clients who have been inactive since long.