India’s first sectoral index in the Agri commodities basket i.e. GUAREX was launched by the National Commodity and Derivatives Exchange Limited (NCDEX). GUAREX is a price based sectoral index that tracks the movement in the futures contracts of guar gum refined splits and guar seed on a real-time basis. This index product will offer a lot of opportunities to the value chain.
The weightage of guarseed and guar gum refined splits in the index will be 63 per cent and 37 per cent, respectively. The index futures will be cash-settled. Initially, Guarex futures contracts expiring in September and October will be made available for trading.
India is the world’s largest guar producer accounting for 80-85 per cent of the output, while Rajasthan is the country’s top producer with 80 per cent market share. Guar seed was sown on 1.81 million hectares so far this year, down from 2.25 million hectares logged in the same period last year.
Important takeaways for all competitive exams:
- NCDEX CEO: Vijay Kumar Venkataraman;
- NCDEX Founded: 15 December 2003;
- NCDEX Headquarters: Mumbai.