The Multi Commodity Exchange (MCX) has acquired an approval from the Securities and Exchange Board of India to release future trading in Arecanut, that is one of important cash crop in India. The change is planning to release futures in August, in midst of the season.

The exchange reputable said that, the MCX can be going with a Red Rashi variety for Arecanut futures.

Arecanut is especially divided into two varieties White and Red. Red variety is a boiled one that is used for production Gutka. The red variety has a combination is called Rashi and it consists of all the varieties including Api, Bette, Gorubulu etc. The investors fee in keeping with the content material of every of those types. Api is taken into consideration as a first-class satisfactory variety so it receives greater price. Even this range has unique sub varieties.

Gutka makers and manufacturers of scented supari makers are capability hedgers on purchase side even as farmers can hedge their vegetation. The futures are expected to assist as Arecanut has five harvesting season in a yr.

India is world’s largest producer of Arecanut and largest patron also.It imports eight-10 in keeping with cent of requirement to meet call for. The commodity’s production in India dropped in 2018-19 to 7,seventy three,000 tonnes in 2018-19 from eight,33,000 MT in 2017-18. The drop was particularly because of yellow leaf disease, which impacted the manufacturing in South. Area of cultivation additionally dropped to 4,47,000 ha from 4,ninety seven,000 ha. India’s yield is a lot lower than that of China and Burma.

In India, over seventy five% of the production is in Karnataka and Kerala handiest. Assam is any other big manufacturer.

Arecanut is mainly used for chewing functions. It is a primary content material of Pan and Gutka. The consumption demand for purple Arecanut is mainly from Gutka enterprise (eighty%). It’s extensively utilized as raw material in manufacturing of scented supari and additionally paints.