India's leading agricultural commodity exchange, NCDEX on Friday re-launched the Bajra-Feed Grade Futures contract. The basis center of the contract will be Jaipur while Dausa and Alwar will be its additional delivery centers.
The commodity launched the Bajra contract after the required approval from SEBI. Bajra is one of the widespread commodities with the presence of a long value chain across different segments.
It is mainly consumed as food and in poultry/cattle feed manufacturing Bajra is majorly a Kharif crop in North India and a summer crop in the southern part of the country. The harvesting of Bajra starts from the month of September. Rajasthan is the largest Bajra producing state in India enjoying a market share of approximately 40%. Uttar Pradesh, Gujarat, Maharashtra, and Haryana are the other leading Bajra producing states with an average share of approximately 20%, 10%, 9%, 7% respectively.
While, commenting on the launch, Mr. Vijay Kumar, MD & CEO, NCDEX said, “NCDEX has always believed in exploring ways to expand its offering and the launch of Bajra Futures contract is another step in that direction. The Bajra contract is a part of our effort to offer innovative products designed to meet the needs of farmers and other value chain participants.”
Mr. Kapil Dev, EVP Business, NCDEX said, “Bajra Futures will be a new addition to the feed grains segment at NCDEX. The Agri commodities due to its dynamic demand-supply scenario are volatile in nature and hence create a price risk for value chain participants. However, with this launch of Bajra Futures, it will not only provide them a well regulated and transparent market for fair price discovery but it will also provide them with a platform for hedging and price risk management. We are hopeful that Bajra futures will serve as an effective hedging instrument for the value chain participants.
NCDEX is a professionally managed online multi commodity exchange. The institutional promoters and shareholders of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nation-wide reach, technology, and risk management skills.
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