The agri-commodity bourse, National Commodity and Derivatives Exchange (NCDEX) has launched futures trading in 'Paddy (Basmati) - Pusa 1121' on July 10, 2019. Investors can trade up to 10 tonne with a compulsory delivery option. Karnal, a core trading centre in Haryana will remain as basis delivery centre, while Sonipat will be the additional delivery centre for 'Paddy (Basmati)- Pusa 1121' futures contracts.
NCDEX Managing Director and Chief Executive Officer Vijay Kumar has said that ‘we are excited by the continuous support of the grain industry and we are expecting a successful start of the futures contract’. NCDEX already has the futures for wheat and maize on its platform. Paddy (Basmati) - Pusa 1121 will also add to the decision making process in the price chain.
NCDEX said this hedging instrument will help commodity participants fetch better price for their grain produce and, thus, will enhance their income. The country's total rice output is around 116 million tonne, while Basmati rice is about 5.5 million tonne with more than 70 per cent share of global Basmati production, while Pakistan contributes with the rest of about 30 per cent share.