Arun Raste, MD and CEO, NCDEX, said, “This launch sends a signal of the government’s dedication and our commitment to strengthening the agri-economy and fostering sustainable growth. We believe that introducing agri-commodities that plug the crucial gaps, ensures comprehensive coverage and enhances market efficiencies significantly. The ultimate benefit passes on to the farmers and value chain participants strengthening the complete product ecosystem.”
The transaction charges shall be at the flat rate of Rs.3 per lakh of trade.The Cotton Wash Oil contract will be cash-settled and will be traded at prices on Ex-Tank, Kadi in Gujarat basis centre, exclusive of GST.The quotation base value is Rs10/kg, with a tick size of 10 paise. For members, the position limit is 1,35,000 MT or 15% of market-wide open interest in the commodity, whichever is higher and for the client, it is 13,500 MT.
Kedar Deshpande, Chief Business Officer, NCDEX, said, “Listing cotton wash oil not only provides value chain participants with a new avenue to monetize their by-products but also fills the gap when trading in the cotton complex. Needless to say, it empowers stakeholders across the supply chain to hedge risks more effectively, tap into new revenue streams, and contribute to the sustainable growth of the agricultural sector.”
India produces approximately 13 lakh metric tonnes of Cotton Wash Oil annually, highlighting its significant role in the agro-based oil segment. Over the past month, a noticeable surge in demand coupled with a restricted supply has exerted upward pressure on prices. This dynamic reflects the delicate balance between supply and demand, underscoring the importance of market conditions in influencing commodity prices.
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