MCX to launch coriander futures

Year

Domestic output
 (in lakh bags)Carry forward
 (in lakh bags)Price
 (Rs per kg) 2005703525.50 2006603530.00 2007403034.50 200840562.00 1 bag = 40 kgs    Initially, trading will be available for three months for delivery in September, October and November with a lot size of 10 tonnes and margins of 7 per cent.  Daily price variation and tick size is fixed at 6 per cent and Re 1 respectively. Open position limit for clients and members is fixed at 1,000 tonnes and 3,000 tonnes. It is 12-month compulsory delivery contract.  India is the largest producer of this four-month rabi crop, which is suitable for intercropping also. The sowing begins in October while harvesting begins early February.  The launch of coriander completes the spices family as other major products such as red chilli, black pepper and cumin are already available for online futures trading.  With an annual output of 350,000 tonnes, India contributes about 60 per cent of the world output. The country exports about 15 per cent of its annual output to the Middle East. Other major producing nations include Morocco, Turkey, Iran, China and Somalia.  In India, Rajasthan, Madhya Pradesh, Andhra Pradesh and Bihar are the major producing states while the southern states are the important consumers.  The crop failure in some parts of the country has affected supply.  Consequently, spot prices have almost doubled to Rs 80-85 a kg on Thursday from Rs 40-42 a kg two months ago. Prices are set to keep rising as fresh crops will arive only eight months later.