NCDEX re-launches crude palm oil futures contract

MUMBAI: National Commodity & Derivatives Exchange Ltd ( NCDEX) said it has re-launched its crude palm oil (CPO) futures contract.

"The CPO contract is available for trading from today. To begin with, the exchange has launched December-13, January-14, February-14 and March-14 expiry contracts. During the early trade, the market participants have shown positive response to the new development," NCDEX said in a statement.

The crude palm oil futures would complete the basket of oil and oilseeds futures on NCDEX platform.

"Palm oil is now a major edible oil consumed in India with market share of 46 per cent and has become an essential part of our daily lives. India consumes about 90-92 lakh tonnes of palm oil every year.

"With the relaunch of the NCDEX crude palm oil contract, we are offering a single platform to the edible oil industry to hedge its price risk on all edible oils," NCDEX MD In-Charge Samir Shah said.

India consumes about 16 million MT of edible oils every year and the edible oil consumption is growing at a rate of 4-5 per cent per year. There has been a significant gap between demand and supply of edible oil, because of limited availability of oil seeds and shifting of acreage to other crops in the domestic market, the release said.