NCDEX introduces hybrid chilli Teja contract

National Commodity & Derivatives Exchange Ltd (NCDEX) here announced today modified contract specifications of chilli Teja futures contract for benefit of major consumers of the commodity with Guntur as the basis centre.
The revised contract will be available for trading from November 3.
The contract has been modified based on the feedback received from market participants. Delivery in the contract will now be permitted only through Comtrack system, which enables the depositors to track their commodity deposits online, NCDEX said in a statement.
Guntur is a major trading centre for chilli, while Khammam will be an additional delivery center. Both Guntur and Khammam have adequate cold storage facility for chilli.

"India is the largest producer, consumer and exporter of chilli in the world. It accounts for 20-30 per cent of the total spice exports from India which in value terms is about Rs 400-500 crore. Futures contracts in chilli offered on the Exchange platform make available a transparent price discovery mechanism and risk mitigation tool for traders," NCDEX MD and CEO Samir Shah said.
Chilli is an important rabi crop in India grown during August-September and harvested during February-May and is chiefly grown in Andhra Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu.