Feasibility of the Fenugreek Futures Contract

Fenugreek is a spice crop and medicinal herb. India is the largest producer of Fenugreek and considerable amount of the produce is consumed internally. Within India, Rajasthan and Madhya Pradesh accounts for its largest area and production. Currently spices like turmeric, chilli, coriander, cumin, etc. are trading through online platform due to which there is a transparency in prices. The present study discusses the feasibility inclusion of Fenugreek in Futures contract and trade perspective in India andalso highlights the need to launch in Futures. The standard operating terms like Tick size, Basis center, cultivation practices, Grades etc. were also discussed. Fenugreek is not traded globally in any of the international commodity exchanges. It providesample scope to start future contracts in India. Thus the prices determined here will act as the global reference price. The study will be beneficial to all the stakeholders throughout the value chain.