The commodity platform of the BSE (Bombay Stock Exchange) has facilitated the maiden delivery of 16,000 kg of almond at the exchange-designated warehouse in Navi Mumbai. The BSE is the only exchange globally to trade in almonds.
The futures contract offers physical market participants an avenue to hedge their price risks and take delivery of almonds in shell.
Launched on June 22 this year, the BSE completed one full delivery cycle in almonds. The trading unit of the contract is 1,000 kg and base value is in units of Rs per kg. The maximum order size is 20,000 kg, and delivery unit is 1,000 kg deliverable at Navi Mumbai. The almond contracts take the reference rate from Navi Mumbai APMC.
Sameer Patil, CBO, BSE, said that for the first time ever, almonds in shell were priced and delivered on market-driven basis of the BSE futures. The contract brings in more transparency, liquidity, and ease of trade for buyers and sellers alike, he said.
The BSE’s almonds in shell prices are widely used as reference prices for physical market transactions, helping industry stakeholders with better price marking and quality benchmarking.
The exchange is also expanding ties with various physical market participants for strengthening of warehouses and other support infrastructure, which is essential for grading, sorting and quality certification.
By reaching out to more participants and spreading awareness of the benefits, the BSE looks forward to increase volumes and greater deliveries in the future.