NCDEX modifies futures contracts for urad, tur

Mumbai, May 17 | Updated: May 18 2006, 05:30am hrs
National Commodity and Derivatives Exchange (NCDEX) on Wednesday announced reintroduction of modified contracts for urad and lemon tur. These contracts are for maturity in June, July, August and September for local variety of urad, and June and July for both Indian and Mynamar variety of lemon tur, it said in a circular.

The modifications are as per directions from the commodity derivatives market regulator, Forward Markets Commission, it said. The FMC had in April asked the exchange to suspend new contracts in urad and tur following a sharp rise in prices of futures contracts in the two commodities.

A major change introduced in the new contracts is that henceforth both the Myanmar origin varieties and Indian varieties in urad and tur have been recognised as valid for delivery.

Until now, only the imported variety from Myanmar for urad was deliverable on the exchange. In the case of tur, Myanmar Origin Lemon tur and Maharashtra Lal tur were considered as two separate contracts for trading on the exchange. Now, both the contracts will be merged.

NCDEX had announced earlier that it will introduce modified contracts in urad and tur, and that one of the changes in specifications would be abolition of the distinction between local and imported varieties.

Also, under the modified contracts, NCDEX has added more delivery centres for urad and tur. In the case of urad, while Mumbai remains the main delivery centre, Tenali in Andhra Pradesh and Jalgaon and Akola in Maharashtra too will be delivery centres.

Moreover, delivery shall be acceptable at Kolkata and Chennai at a discount of Rs 100 per 100 kg, it said. Similarly, for tur, besides the main delivery centre of Mumbai, the NCDEX said.