The National Multi-Commodity Exchange (NMCE) today introduced futures contract in Menthol Crystal. NMCE is the first commodity exchange to introduce this commodity in futures. | |
| As per the approval of the regulator, Forward Markets Commission (FMC), NMCE launched futures contracts in three series to begin with - which will expire on October 15, November 15 and December 15, 2007 respectively. |
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| Transparent, colourless, dry needle-like pleasant-smelling Menthol Crystal is produced from mentha oil, which is widely used in confectionery and pharmaceutical formulations in the domestic and international markets. Squaring up of positions will be permitted between the 12th and 15th of the delivery month. No fresh position is allowed during these days. |
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| The open position limit for clients is 200 MT and for members 600 MT. In case of near month contracts, it is 20 MT for clients and 60 MT for members. The Central Warehouse Corporation warehouse in Delhi will be the delivery centre. Sellers can tender warehouse receipt for settlement at the closing price of the previous day. |
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| The daily price limit will be 3 per cent above and below the last traded price, and 6 per cent above and below the last closing price, inviting in-built circuit breaker. |
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| Menthol Crystal being a volatile commodity with a melting point of 43 degrees Celsius, it has to be stored in 25-kg airtight fibre drum packs lined with thermocol sheet at controlled room temperature. |
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| As to quality parameters, Menthol Crystal should not contain more than 0.025 per cent of non-volatile matter and arsenic of not more than 2.90 particles per million (PPM). |
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| Meanwhile, NMCE has also launched 43 new series and six new 'spread series¿ for futures contract in different commodities, including pepper, cardamom, rubber, oilseeds and their derivatives. |
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