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The futures contracts on Isabgol Seed launched by National Commodity and Derivatives Exchange on Wednesday has hit the upper circuit and the two near month contracts registered a turnover volume of 171 tonnes worth ₹4.27 crore with an open interest of 147 tonnes.
The agriculture-focused exchange had launched four contracts of Isabgol seeds expiring every month from May to August and saw good interest in near month contracts.
The new contract witnessed an enthusiastic response from the market participants including FPOs, processors, traders, exporters amongst others.
Unjha in Gujarat, being the traditional trading hub of Isabgol, is the delivery centre for NCDEX Isabgol Seed Futures contract.
The Isabgol seed contract will be a compulsory delivery-based contract and will be traded at prices on ex-warehouse, Unjha basis center exclusive of GST. The contract will have a daily price limit of 6 per cent on 4 + 2 basis.
As per market sources, India is the largest exporter of the Isabgol husk with a contribution of over 85 per cent of global consumption. However, despite having near-monopoly in this medicinal agricultural produce, Indian growers and exporters are often exposed to volatility in prices due to various internal and external factors, raising the need for a tool that may provide opportunities in price risk management in the commodity.
Ajay Kumar, Director, Kedia Commodities said Isabgol prices are currently trading at an all-time high of around ₹24,000 a tonne due to heavy rain and hail strom leading to crop damage in major growing areas of Rajasthan
Moreover, monsoon clouds in March have cast a shadow over the quality and yield besides the rainfall during the peak harvesting in March has damaged 15-18 per cent of the total crop. Isabgol arrivals has dropped 21 per cent from January to till date, he said.
The demand has been surging from the pharma industry for dietary supplements, besides from health drinks, beverages, ice-cream and bakery product sellers as it improve the fibre content.
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