Sugar Vashi contract scrapped

The National Commodity and Derivatives Exchange (NCDEX) has withdrawn Sugar S (Vashi) contracts with immediate effect owing to poor trading interest. Sugar S (Kolkata) will, however, continue for the next three months.

In a circular issued today, the exchange said, "Trading and clearing members of the exchange are requested to note that Sugar S Grade (Vashi) contracts are withdrawn by the exchange and no new contracts in Sugar S Grade (Vashi) shall be launched for trading till further notice." The difference between Sugar S (Vashi) and Sugar S (Kolkata) is the basic delivery centre. However, some delivery centres were common for both contracts.

No existing contract is available for Sugar S (Vashi) right now. "There was no trade for Sugar S (Vashi) since the beginning of April this year and, hence, the exchange had sought permission from the Forward Market Commission. The regulator permitted the withdrawal on June 14th," an NCDEX official said.

The commodities market regulator had hinted earlier of hard decisions, including closure of illiquid contracts. Apart from Sugar S, NCDEX currently trades on Sugar M for two running months including June and July.