NCDEX set to launch robusta cherry futures

National Commodity and Derivatives Exchange is launching futures trading in robusta coffee cherry AB variety on September 10, an official with the exchange said.

NCDEX is launching five contracts expiring in January, March, May, July and September 2008. It has already secured approval from the market regulator Forward Markets Commission to launch futures trading in robusta Cherry AB.

Currently, it offers futures trading in robusta Cherry clean bulk. "We decided to launch this variety for futures trading because it is a benchmark grade for exporters. Also, this variety accounts for the largest share in exports," the NCDEX official said.

India exports 80 per cent of the coffee produced. In 2007-08 (April-March), India's coffee production has been estimated at 291,000 tonnes, compared with output of 288,000 tonnes in 2006-07, data from the Coffee Board of India said. "Exporters are very keen and enthusiastic about the launch of this grade. They were looking for a dynamic coffee product in futures trade and this fits the bill," the official said.

For robusta cherry AB variety, unit of trading will be 2 tonnes and delivery will be compulsory. Daily price limit for the contract will be 4 per cent extendable by another 2 per cent after cooling period of 15 minutes.