The Indian Commodity Exchange (ICEX) is all set to launch a black pepper contract on May 20. The exchange is eyeing 25 per cent-50 percent of the Rs 3,000-crore physical market to use the price hedging on its platform in the first year.
Talking to ET, Sanjit Prasad, CEO, ICEX said “Historically black pepper contract is one of the oldest contracts to have been launched in the commodity derivative market. Unfortunately, it has witnessed a chequered history. ICEX, after doing an in-depth study of the physical market, has consciously decided to re-launch contract based on litre weight- 550 GL rather than location-specific characteristics-MG1.”
Source: Economic Times