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FM launches the country’s First Agri-commodity Options Contracts in Guar Seed
The Union Finance Minister, Shri Arun Jaitley launched the country’s First Agri-commodity Options Contracts in Guar Seed on the occasion of Makar Sankranti in New Delhi.
Launching the country’s First Agri-commodity Options Contracts in Guar Seed the Union Finance Minister, Shri Arun Jaitley said that India ranks among the fastest growing major economies in the world today. He said that since a large portion of our population is dependent on agriculture, it is important to have equitable growth. Shri Jaitley said that farmers have helped the country to overcome a long period of scarcities to reach the present era of abundance.
He said that NCDEX Agri-options are an important tool which will contribute to the Prime Minister’s vision of doubling the farmers’ incomes by 2022. The Finance Minister said that the Guar seed is a major contributor to revenue generation, hence making it a suitable commodity to start with for Options. The Finance Minster congratulated the NCDEX for this initiative.
Speaking further on the occasion, the Finance Minister, Shri Jaitley said that this may appear to be a small step, but is a significant one, in the direction of agricultural trade as this will ensure that the farmers will receive a better price for their commodities.
Talking to media on the occasion Finance MinisterShri Arun Jaitley said that the agriculture sector is the top priority for the government because the country’s economic growth is not “justifiable and equitable” unless the benefits are “clear and evident” in the farm sector. Therefore, the government’s priority is to ensure the gains reach the farmers and the growth is visible even in the farm sector, he said.
NCDEX Agri-Options in Guar Seed aim to provide farmers better engagement in the commodity markets.
NCDEX also launched Mandi.com, a mobile app for farmers where they can learn more about Options and the commodity markets.For a commodity trader or member of a Farmer Producer Organization( FPO), this would be an additional tool to hedge your price risk and optimize your profits with the launch of Agri-Options by the Union Finance Minister, Shri. Arun Jaitley, The First ever Agri-Options trade was executed in front of a panel of distinguished guests.
National Commodity and Derivatives Exchange Limited (NCDEX) launched India’s first Agri-Options on guar seed futures in the presence of SEBI, WDRA, Industry Associations, Government Officials and FPO members. Farmers from various States across the country were present at the occasion to mark the commencement with a Live Trade by a farmer producer company.
Options contracts expiring in the months of February 2018, March 2018 and April 2018 would be available for trading w.e.f. January 14, 2018. The Guar Seed Options will be European type with a tick size of Re. 0.50 per quintal. The Daily Price Range (DPR) will be based on the factors of DPR of the underlying Futures contract and volatility.
Options contract shall be launched on the trading day following the day on which the underlying Futures contract is launched. The expiry date of agri-Options will be the last Wednesday of the month that precedes the month of expiry of the underlying Futures contract. If Wednesday happens to be a holiday, then the Expiry Date shall be the next trading day of the Exchange. In case of banking transaction closing days etc. close to the Options Expiry Date, the same shall be fixed to provide for sufficient time ahead of such days. However, launch calendar with exact date of expirations shall be notified in advance.