MUMBAI 11 November 2020: National Stock Exchange of India Ltd (NSE), the leading stock exchange in India, will launch its first agricultural commodity futures contract for Crude Degummed Soybean Oil (CDSO) on 1 December 2020.
The contract is monthly expiry cash settled futures contract with a trading lot size of 10 MT and a price basis as Kandla. India is the largest importer of edible oils in the world. This futures contract will provide the missing link in the Indian commodity derivatives ecosystem and will facilitate the Soybean Oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price risk.
The launch of its first agricultural commodity futures contract is yet another milestone in NSE's mission of bringing in market facilitating products and services which began more than 25 years ago. The introduction of agricultural commodities to our existing suite of products gives the broking community a complete NSE ADVANTAGE to trade and clear on a single platform.
Speaking on this, NSE managing director & CEO Vikram Limaye said, “NSE is dedicated to deepening the Indian commodity markets by providing convenient and cost-effective onshore hedging products. India being one of the largest consumers of edible oils in the world, requires an efficient hedging mechanism for crude Soybean Oil as well. This product will work as a perfect price risk management tool for the market participants and the commodity ecosystem at large.”
The Solvent Extractors' Association of India (SEA) Executive Director Dr. B.V. Mehta said, "Exchange traded derivatives contracts are a very useful tool that make pricerisk management convenient and easyfor the industry. I am sure that our members will find these futures contracts useful in their day-to-day business purposes as well. More such futures contracts should be launched going ahead so that we can have a vibrant commodity markets ecosystem in India."
Image credit: Deccan Herald
