Online commodity exchange National Multi-Commodity Exchange of India Ltd (NMCE) has re-launched futures trading in coffee robusta.
Coffee will be traded on the NMCE platform during domestic and global session up to 10 pm. This is to enable Indian exporters, who make export trade and commitments late in the evening, hedge their commitment on real-time basis on NMCE, the exchange said in a release here today.
The NMCE coffee contract specification has been changed to Robusta Cherry EP Bulk from the earlier Robusta Cherry AB. This has been done to ensure larger participation from all stakeholders, as this quality is largely produced in both Karnataka and Kerala; and is used as raw produce for further processing.
"India produces about 2,90,000 metric tonne of coffee annually which constitutes 100,000 tonne and 1,90,000 tonne of Arabica of Robusta coffee respectively. More than 70 per cent of coffee produced in India is exported to over 50 countries accounting for $458.18 million (Rs 1,907 crore) annually in revenues. With permission of evening trading, exporters will be able to cover their price risk exposure at the same time as others in the global coffee market," said NMCE Director Sudip Bandyopadhyay.
Initially, NMCE Robusta Cherry EP Bulk Coffee Futures contracts will be available for the months of November 2008 and January 2009. The contracts shall be bi-monthly.
