Multi Commodity Exchange of India (MCX), India's No. 1 commodity exchange, has launched trading in Malabar Garbled Black Pepper futures contract on July 24, 2017. This step has been taken by the exchange in a bid to expand its agri product suite and further contribute to the growth of agriculture market in India.
Currently, September, October & November Black Pepper contracts will be available for trading on the exchange, with 1 MT as the trading unit and Kochi (Kerala) as the basis centre. The transaction charges on Black Pepper futures contract is Rs 5 per crore of turnover.
The exchange's pepper futures contract is a healthy reflection of the spot market and is equipped with a robust warehousing and delivery mechanism. It will provide a viable hedging platform to the entire gamut of black pepper value chain participants such as, traders, planters, importers, exporters wholesalers, and retailers who are exposed to price risk due to domestic & international factors.