NSE to launch its first agricultural commodity futures contract


National Stock Exchange of India Ltd (NSE), the leading stock exchange in India, will launch its first agricultural commodity futures contract for Crude Degummed Soybean Oil (CDSO) on December 1st, 2020. The contract is a monthly expiry cash-settled futures contract with a trading lot size of 10 MT and price basis as Kandla.

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India is the largest importer of edible oils in the world. This futures contract will provide the missing link in the Indian commodity derivatives ecosystem and will facilitate the Soybean Oils processing and allied industries in India and overseas, a perfect hedging tool for managing their price risk.

The launch of its first agricultural commodity futures contract is yet another milestone in NSE’s mission of bringing in market facilitating products and services which began more than 25 years ago. The introduction of agricultural commodities to our existing suite of products gives the broking community a complete NSE ADVANTAGE to trade and clear on a single platform.

Mr. Vikram Limaye, MD & CEO, NSE said “NSE is dedicated to deepening the Indian commodity markets by providing convenient and cost-effective onshore hedging products. India is one of the largest consumers of edible oils in the world, requires an efficient hedging mechanism for crude Soybean Oil as well. This product will work as a perfect price risk management tool for the market participants and the commodity ecosystem at large.”

The Solvent Extractors’ Association of India (SEA) has congratulated the NSE on this occasion. Dr. B.V. Mehta, Executive Director of the SEA said, “Exchange-traded derivatives contracts are a very useful tool that makes price risk management convenient and easy for the industry. I am sure that our members will find these futures contracts useful in their day-to-day business purposes as well. More such futures contracts should be launched going ahead so that we can have a vibrant commodity markets ecosystem in India.”

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