1. Commodity News

Gur Futures trading commences at NCDEX; prices maintaining above 1100

Abhijeet Banerjee
Abhijeet Banerjee

Gur futures trading have commenced from 15th December onwards, at India’s leading Agri commodity exchange, National Commodity & Derivatives Exchange Limited (NCDEX).

NCDEX has re-launched this product, based on market demand, eventually adding one more product to its diversified Agri commodities portfolio. Muzaffarnagar, UP, is the basis centres in Uttar Pradesh for NCDEX Gur futures. Uttar Pradesh leads in India’s production with a giant share of 47 percent of the country’s total output, followed by Maharashtra, Karnataka and Tamil Nadu, which produce 21 percent, 8 percent and 5 percent of total Gur output, respectively. 

The January contract prices had been fluctuating between 1060 and 1110 levels since the launch. Total Open Interest by end of the week had increased from 180 MT to 320 MT and the daily average trade value was recorded between 1-1.5 crore during the week. The contracts will be available for the entire monthly expiry for year 2021 except for May and October. The price quotation will be Rs. per Mann or Mound, i.e. Rs per 40 kg. As there is regular demand from the confectionary industry and processors, market participants expect prices to remain stable to firm in forthcoming weeks.  

Launching of Gur Futures is the outcome from increasing demand from the spot market participants. India leads in the world Gur production with a sharing of nearly 60%. However no price benchmark was available to either producers or traders. Therefore with the launch, the industry can be hopeful in fulfilling the long pending demand of the industry, as there will be higher chances of efficient price discovery and price dissemination for the commodity.   

Gur or Jaggery is a pure, traditional, unrefined form of sweetener. It is prepared by concentrating the sugarcane juice. It is available in the form of solid block and in semi-liquid form. It is a natural product of sugarcane. Jaggery or Gur plays an important role in this health conscious era where healthy food is preferred over normal food.  Gur scores over white sugar in many aspects, such as – Gur contains minerals and vitamins unlike sugar.

Additionally, studies have indicated that Jaggery has much nutritional and medicinal aspect like its anti-carcinogenic and antitoxic activity. The commodity is widely used in food products, distilleries and for medicinal purposes. Moving forward, participating in Gur futures will be beneficial for primary producers, traders, consumers and other stakeholders in managing price volatility and hedging the price risk.

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