Contract specifications of Sugar- M Futures contract
(Applicable for contracts expiring in January 2011 and thereafter)

Type of Contract

Futures Contract Specifications

Name of Commodity

Sugar (M Grade)

Ticker symbol

SUGARM200

Trading System

NCDEX Trading System

Basis

Ex-warehouse Kolhapur inclusive of all taxes

Unit of trading

10 MT

Delivery unit

10 MT net basis packed in 50 Kgs new A Twill Bags/PP bags Also deliverable in 100 Kg new A Twill jute bags

Quotation/base value

Rs/quintal

Tick size

Re 1

Quality specification

Sugar in crystal form manufactured by vacuum pan method with:

Moisture

0.08% Max

Polarisation

99.80% Min

ICUMSA

> or = 150 ICUMSA and < 200 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA Method Book

Grade

M

Grain Size

Medium as determined by the methods prescribed in IS:498-2003

Crop Year Reference

Till December expiry contract: Production of the last crushing season is allowed in addition to current crop.
From January expiry contract: Production of only current crushing season is allowed.

Quantity variation

+/- 5%

Delivery center

Kolhapur (up to 50 km from city limits)

Additional delivery centres

Ahmedabad, Belgaum, Chennai, Delhi, Erode, Gorakhpur, Indore, Jaipur, Kanpur, Kolkata, Muzaffarnagar, Pune, Sitapur, Vijaywada and Vizag (Upto 50Kms of City limits) No location premium and discount shall be applicable.

Hours of Trading

As per directions of the Forward Markets Commission from time to time, currently-
Mondays through Fridays: 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

Due Date/ Expiry Date

20th day of the delivery month
If 20th happens to be a non trading day, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange

Delivery Specification

Compulsory delivery: Upon expiry of the contracts, all open positions will be settled by taking or giving delivery as the case may be.
The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.

Also Deliverable

Sugar S of the following Specification:

Moisture

0.08% Max

Polarisation

99.80% Min

ICUMSA

> or = 100 ICUMSA and < 150 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA Method Book

Grade

S

Grain Size

Small as determined by the methods prescribed in IS:498-2003

Crop Year Reference

Till December expiry contract: Production of the last crushing season is allowed in addition to current crop
From January expiry contract: Production of only current crushing season is allowed.

Closing of contract

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

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

Opening of Contracts

Trading in new contract will open on the 10th day of the month in which 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

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

Limit for aggregate contracts traded on all the Exchanges - applicable for all the contracts together for Grade-M and Grade-S both including position in expiry month:
Client-wise: 20,000 MT
Member-wise: 1,00,000 MT or 15% of market wide open interest whichever is higher

Near Month Limits:
The following limits would be applicable for one month prior to the expiry of a contract
Client-wise: 8,000 MT
Member-wise: 40,000 MT or 15% of the market-wide open interest whichever is higher

Special Margin

Special margin of 10% of the value of the contract, Whenever the rise and fall in price exceeds 20% from the first days closing price, is payable by buyer or seller, depending upon whether price rise or fall as the case may be. The margin shall stay in force so long as price stays beyond 20% limit and will be withdrawn as soon as the price is within 20% band  

Premium/Discount

S grade sugar with ICUMSA less than 100 could be accepted as good delivery but with no premium. Sugar S with ICUMSA more than 150 shall be rejected.
M grade sugar with ICUMSA 100 - 150 could be accepted as good delivery but with no premium. Sugar with ICUMSA more than 200 shall be rejected.

 

Tolerance Limit - Sugar-M grade

Commodity Specifications

Basis

Acceptable quality range as per contract specification

Permissible Tolerance

Moisture

0.08% Max

-

-

Polarisation

99.80% Min

-

-

ICUMSA

> or = 150 ICUMSA and < 200 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA Method Book

Sugar with ICUMSA between 100 and 150 also accepted as good delivery

+/- 25
ICUMSA

Grade

M

-

-

Grain Size

Medium as determined by the methods prescribed in IS:498-2003

-

-

 

Tolerance Limit Sugar - S Grade

Commodity Specifications

Basis

Acceptable quality range as per contract specification

Permissible Tolerance

Moisture

0.08% Max

-

-

Polarisation

99.80% Min

-

-

ICUMSA

> or = 100 ICUMSA and < 150 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA method book

Sugar with ICUMSA less than 100 is acceptable as good delivery

+/- 25
ICUMSA

Grade

S

-

-

Grain Size

Small as determined by the methods prescribed in IS:498-2003

-

-

 

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 Sugar M

Contract Launch Month

Contract Expiry Month

December 27, 2010

January 2011, February 2011 and March 2011

January 2011

April 2011

February 2011

May 2011

March 2011

June 2011



Contract specifications of Sugar- S Futures contract
(Applicable for contracts expiring in January 2011 and thereafter)

Type of Contract

Futures Contract Specifications

Name of Commodity

Sugar (S Grade)

Ticker symbol

SUGARS150

Trading System

NCDEX Trading System

Basis

Ex-warehouse Kolhapur inclusive of all taxes

Unit of trading

10 MT

Delivery unit

10 MT net basis packed in 50 Kgs new A Twill Bags/PP bags Also deliverable in 100 Kg new A Twill jute bags

Quotation/base value

Rs/quintal

Tick size

Re 1

Quality specification

Sugar in crystal form manufactured by vacuum pan method with:

Moisture

0.08%Max

Polarisation

99.80% Min

ICUMSA

> or = 100 ICUMSA and < 150 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA Method Book

Grade

S

Grain Size

Small as determined by the methods prescribed in IS:498-2003

Crop Year Reference

Till December expiry contract:
Production of the last crushing season is allowed in addition to current crop
From January expiry contract:
Production of only current crushing season is allowed.

Quantity variation

+/- 5%

Delivery center

Kolhapur (up to 50 km from city limits)

Additional delivery centres

Ahmedabad, Belgaum, Chennai, Delhi, Erode, Gorakhpur, Indore, Jaipur, Kanpur, Kolkata, Muzaffarnagar, Pune, Sitapur, Vijaywada and Vizag (Up to 50 Kms of City limits) No location premium and discount shall be applicable.

Trading hours

As per directions of the Forward Markets Commission from time to time, currently-
Mondays through Fridays: 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

Due Date/Expiry Date

20th day of the delivery month
If 20th happens to be a non trading day, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange

Delivery Specification

Compulsory delivery: Upon expiry of the contracts, all open positions will be settled by taking or giving delivery as the case may be.

Closing of Contract

Upon Expiry of the contract all the 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.

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

Opening of Contracts

Trading in new contract will open on the 10th day of the month in which 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

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

Limit for aggregate contracts traded on all the Exchanges - applicable for all the contracts together for Grade-M and Grade-S both including position in expiry month:
Client-wise: 20,000 MT
Member-wise: 1,00,000 MT or 15% of market wide open interest whichever is higher

Near Month Limits
The following limits would be applicable for one month prior to the expiry of a contract
Client-wise: 8,000 MT
Member-wise: 40,000 MT or 15% of the market-wide open interest, whichever is higher

Special Margins

Special margin of 10% of the value of the contract, Whenever the rise and fall in price exceeds 20% from the first days closing price, is payable by buyer or seller, depending upon whether price rises or falls as the case may be. The margin shall stay in force so long as price stays beyond 20% limit and will be withdrawn as soon as the price is within 20% band.

Premium/Discount

S grade sugar with ICUMSA less than 100 is also accepted as good delivery but with no premium.
Sugar with ICUMSA more than 150 shall be rejected.

Tolerance Limit for Sugar-S

Commodity Specifications

Basis

Acceptable quality range as per contract specification

Permissible Tolerance

Moisture

0.08% Max

-

-

Polarisation

99.80% Min

-

-

ICUMSA

> or = 100 ICUMSA and < 150 ICUMSA as determined by GS9/1/2/3-8 prescribed in Sugar Analysis ICUMSA Method Book

Sugar with ICUMSA less than 100 is acceptable as good delivery

+/- 25 ICUMSA

Grade

S

-

-

Grain Size

Medium as determined by the methods prescribed in IS:498-2003

-

-

 

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 Sugar - S :-

 

Contract Launch Month

Contract Expiry Month

December 27, 2010

January 2011, February 2011 and March 2011

January 2011

April 2011

February 2011

May 2011

March 2011

June 2011





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.