1. Home
  2. News

Groundnut With Shell Launched by National Commodities and Derivatives Exchange; Decision Welcomed by IVPA, CPAI

As the groundnut with shells has been launched by the National Commodities and Derivatives Exchange (NCDEX), the Indian Vegetable Oil Producers Association (IVPA) and the Commodity Participants Association of India (CPAI) have welcomed this move.

Aysha Anam
Representational image (Photo Courtesy: Pixabay)
Representational image (Photo Courtesy: Pixabay)

The National Commodities and Derivatives Exchange (NCDEX) on Friday, June 16, announced the launch of groundnut (with shell). The contract of the same will start after June 19, 2023. Indian Vegetable Oil Producers Association (IVPA) and the Commodity Participants Association of India (CPAI) have welcomed this move.

“We believe the groundnut derivatives offer immense value and opportunities for commodity traders due to their diverse applications and high demand,” CPAI said.

“We believe that this initiative will further strengthen the overall ecosystem of the vegetable oil industry, create value for all stakeholders, and contribute to the growth of the Indian economy,” IVPA said.

Importance of Groundnut

Groundnut oil is widely consumed across the globe for cooking purposes. It is known for its “health benefits, versatility in culinary application, and stability at high temperatures,” CPAI told it is an essential commodity for traders.

Groundnut is an essential component of the animal feeding industry, with products like groundnut meal and groundnut cake.

“Commodity traders benefit from the importance of groundnut derivatives by capitalizing on the steady demand and price fluctuations in the market,” said CPAI.

A number of factors influence crop yields, weather conditions, geopolitical events, and changing consumer preferences, presenting traders with profit and risk management through hedging and future contracts.

The major groundnut-producing countries include China, India, the United States, Nigeria, and Argentina.

IVPA encourages all members of the Indian vegetable oil industry to actively participate in the groundnut’s (in shell) future contracts on the NCDEX platform. “It is an opportunity to effectively manage price risks, enhance market knowledge, and contribute to the overall growth and stability of the groundnut market in India,” it said.

Test Your Knowledge on International Day for Biosphere Reserves Quiz. Take a quiz
Share your comments

Subscribe to our Newsletter. You choose the topics of your interest and we'll send you handpicked news and latest updates based on your choice.

Subscribe Newsletters