Changes in NCDEX futures

Changes in specifications by the National Commodity & Derivatives Exchange (NCDEX) are expected to bring turmeric futures at more realistic levels.

The exchange has added one more delivery centre starting June contract and has introduced some other changes on trade demand. Speculators have been playing a key role in heating up turmeric futures prices.

On many occasions, the futures prices were quoted at much higher than the spot levels. With these changes, the futures prices are expected to synchronise with the spot rates.

Warangal has been added to the list of additional delivery centres. The system of giving transportation premium/ discount has been discontinued effective from the June contract.

Delivery of the Duggirala and Warangal varieties (at 3 per cent discount) had now been brought at par with the Nizamabad variety, said Ravindra Reddy, product manager - spices, NCDEX. Premium helps farmers, who sell their products, get higher prices.

Speaking further on major changes beginning the June contract, he said the Maharashtra variety, desi Cuddapah will have 4 per cent premium compared with the Nizamabad variety. In earlier contracts, desi Cuddapah was non-deliverable.

"The changes will bring turmeric futures at more realistic levels," said Manubhai Shah, honorary secretary, Bombay Kariana Colours & Chemicals Merchants Association, Navi Mumbai.