National Commodity and Derivatives Exchange (NCDEX), India’s leading agri commodity exchange, has launched trading in the futures contract on Refined Castor Oil, on March 21, 2022, initially with four monthly expiries from April to July 2022. The Exchange already has a successful contract in Castor Seed and the launch of Refined Castor Oil will enhance the castor complex in the futures segment of NCDEX.
The Refined Castor Oil contract will be a cash-settled contract and will be traded at prices on ex-Tank, Kandla port basis. The contract will have a daily price limit of 6% on 4 + 2 basis.
India accounts for nearly 90% of the world’s Castor Seed production. Gujarat accounts for 80% of the country’s Castor output, followed by Rajasthan and Andhra Pradesh and Telangana. India’s castor seed area is likely to fall marginally to 8.11 lakh hectares in 2021-22 while production is estimated at around 1.8 million tonnes, a shade higher than previous year.
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