Contract Specifications of Potato Futures contract expiring from March 2010 and onwards. ( updated as on 7 January, 2010 )

Type of Contract

Futures Contract Specifications

Name of Commodity

Potatoes Fair Average Quality

Ticker symbol

POTATO

Trading System

NCDEX Trading System

Basis

Ex-warehouse Agra gross weight exclusive of all local taxes – taxes, fees ( i.e. mandi fee ), levies etc.

Unit of trading

15 MT

Delivery unit

15 MT

Quotation/base value

Rs per quintal

Tick size

10 paisa

Quality specification

Potato as per following specification shall be acceptable for physical delivery

Width Size (potato width size by one dimension or the other)
Less than 35 mm -10% Max
More than 80 mm -15% Max

Dull, Skin blemishes, Cut , Crack ( cut and cracked not exceeding 5% max), Sprouted (Sprouted content not exceeding 1% max and Sprout length more than 2 mm only to be considered as Sprouted), Black scars and Green Potatoes

15% basis

Soil (kgs per bag)

1 kgs Max per 51 Kgs bag

The potatoes should be firm and the skin should be mature and thick. The potatoes should be free from disease.

Quantity variation

+/-10%

Delivery center

Agra (within a radius of 50 km from the municipal limits)

Additional delivery centers

Indore and Vadodara (For all the centers up to the radius of 50 kms from the municipal limits) with locational premium/discount as announced by the Exchange before launch of contract

Types of Potato Deliverable

Agra – 3797
Indore – Jyoti and Laukar
Vadodara- Badshah and Laukar

All the varieties will be at par

Hours of Trading

As per directions of the Forward Markets Commission from time to time, currently -

Mondays through Friday - 10:00 AM to 5:00 PM
Saturdays - 10.00 AM to 2.00 PM

The Exchange may vary the above timing with due notice

Delivery specification

Upon expiry of the contract, all outstanding open positions would result in compulsory delivery.

The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.

Delivery Logic

Compulsory Delivery

Opening of contracts

Trading in a new month contract will open on the 10th day of the month in which the near month contract is due to expire. If the 10th day happens to be a non-trading day, contracts would open on the next trading day

Closing of contract

Upon the expiry of contract all the outstanding open position would result in compulsory delivery

Due date/Expiry date

20th day of the delivery month

If 20th happens to be a holiday; a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange, which is not a Saturday

No. of active contracts

As per launch calendar

Price band

Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by another (+ / -) 1% and trade will be resumed.

If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%.

Position limits

For Members - Maximum up to 45,000 MT or 15% of market-wide open interest whichever is higher.

For clients - Maximum up to 15,000 MT

The above limits will not apply to bona fide hedgers. For bona fide hedgers, the Exchange will, on a case to case basis, decide the hedge limits. Please refer to Circular No. NCDEX/TRADING-100/2005/219 dated October 20,2005 .

For near month contracts:
The following limits would be applicable from twenty eight days prior to expiry date of a contract
Member: Maximum up to 9,000 MT or 15% of the market-wide near month open position, whichever is higher
Client: Maximum up to 3,000 MT

Special margins

In case of additional volatility, a special margin at such percentage, as deemed fit, will be imposed in respect of outstanding positions, which will remain in force as long as the volatility exists, after which the special margin may be relaxed

Final Settlement Price

The Final Settlement Price (FSP) shall be arrived at by taking the average of the last three days spot prices. The last spot price for the day as polled by the Exchange during the last three days shall be taken for arriving at the FSP. In the event of unavailability of the spot prices during any one of the last three days excluding the expiry day (i.e., on E - 1 or E - 2), the spot price of the previous day (E - 3) shall be considered for the average of the last three days. In case spot prices are not available during the 3 day period prior to the expiry date, the last spot price of the expiry day shall be considered for arriving at the FSP.

 

Tolerance limit :-

Commodity Specifications

Basis

Acceptable quality range as per contract specification

Permissible Tolerance

Width Size (potato width size by one dimension or the other)

Less than 35 mm -10% Max

NA*

NA*

More than 80 mm -15% Max

Dull, Skin blemishes, Cut, Crack (cut and cracked not exceeding 5% max), Sprouted (Sprouted content not exceeding 1% max and Sprout length more than 2 mm only to be considered as Sprouted), Black scars and Green Potatoes

15% max

NA*

+/-0.50%

Soil (kgs per bag)

1 kgs Max per 51 Kgs bag

NA*

NA*

The potatoes should be firm and the skin should be mature and thick. The potatoes should be free from disease.

 


N/A * = Not Applicable

Note: Tolerance limit is applicable only for outbound deliveries. Variation in quality parameters within the prescribed tolerance limit as above will be treated as good delivery when members/clients lift the materials from warehouse. These permissible variations shall be based on the parameters found as per the immediate preceding test certificate given by NCDEX approved assayer.

 

Contract Launch Calendar:-

 

Contract Launch Month

Contract Expiry Month

January 5, 2010

March 2010

January 5, 2010

April 2010

January 11,2010

May 2010

February 2010

June 2010

 

Contract Launch Calendar:-

 

Contract Launch Month

Contract Expiry Month

March 2010

July 2010

April 2010

August 2010

May 2010

September 2010

Contract Launch Calendar of Potato :-

 

Contract Launch Month

Contract Expiry Month

June 2010

No Launch

July 2010

No Launch

August 2010

March 2011

September 2010

April 2011

October 2010

May 2011

November 2010

June 2011

December 2010

July 2011

January 2011

August 2011

February 2011

September 2011

March 2011

No Launch






Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.