In a push to PM Modi’s ‘vocal for local’ call, Bombay Stock Exchange on Monday launched the monthly futures contracts in almonds, which is the world’s only available derivatives contract for trading in almonds. This move came days after BSE had launched options trading in Gold mini and Silver contracts on its platform. After receiving approval from Sebi, NSE launched options on gold mini on June 8, while BSE offered options on gold mini and silver kilo contracts from June 1 this year. “For the first time, almonds will be priced on a forward-looking, market-driven basis based on the BSE Almond futures, offering stakeholders greater transparency and certainty,” said Ashish Kumar Chauhan, MD & CEO of BSE. “The launch of this unique and innovative contract marks momentous progress within the global agri commodity market and reinforces BSE’s commitment to widen and deepen the commodity derivatives market in India,” he added.
The contract trading unit is 1,000 kgs. The maximum order size is 20,000 kgs, delivery units are 1000 kg deliverable at Navi Mumbai. BSE’s almond contracts will take the reference rate of Navi Mumbai APMC and per lot would be one metric tonne. “The quality specifications should meet FSSAI standards with certified crack outs to be of 70% to be based on the net edible yield, with allowable crack out of 68%,” BSE said in its press release. BSE provides trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds and stock lending and borrowing. Last year in October, BSE launched commodity derivatives trading in gold, silver, copper, Oman crude oil guar gum, guar seeds and turmeric.
The size of the almond market is small as compared to other commodities. Almond futures contracts will provide ease of trade for buyers-sellers alike. “It makes the trade go digital and more organised which is the need of the hour as we move into lower prices and higher almond supplies in the coming years with California producing record crops each year,” said Sameer Bhanushali, MD, Ashapura Agrocomm. The wide dissemination of almond prices on the BSE platform will be used as reference prices for physical market transactions. The exchange is reaching out to participants and spreading awareness of the benefits of these products and looks forward to a wide participation in the future, said in a press release. BSE is also the first Indian exchange to incorporate negative pricing in Brent crude oil contracts in its trading system.