NCDEX to launch modified chilli-Teja futures contract tomorrow

Leading agri-commodity bourse NCDEX today said it will launch modified chilli-Teja contract, with direct delivery option, for futures trading tomorrow.
The chilli Teja, a popular variety among processors, exporters and consuming industries, comprises 35 per cent of the total chilli production in the country.
"With the NCDEX prices being a benchmark for the trade, the modified NCDEX chilli-Teja contract, which includes direct delivery, will be extremely beneficial to them in ensuring consistent quality supply," NCDEX Managing Director and CEO Samir Shah said in a statement.
Under the direct delivery mechanism, which is similar to the practise followed in the physical market, a buyer is required to arrange for assaying by the exchange-approved assayer at the seller's warehouse, and lift goods directly from there, the exchange said.

In case, the goods tendered for delivery, fail to conform to the quality specifications mentioned in the contract, it would constitute a seller's default, it added.
Khammam and Guntur in Andhra Pradesh will be regular delivery centers.
Chilli is an important cash crop in India and about one million farmers are engaged in the production of this crop in Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu and other states.
The chilli-Teja variety is a hybrid variety known for its pungency and is hence the most preferred variety for oleoresin manufacturers. It has also become the most popular variety among chilli growers because of good price and high consistency in production.