sugar ppt

www.nationalspotexchange.com

About NSELMISSIONTo develop a pan India, institutionalized, electronic, transparent Common Indian Market offering compulsory delivery based spot contracts in various agricultural and non agricultural commodities, with a view to reduce the cost of intermediation by improving marketing efficiency and thereby improving producers realization coupled with reduction in consumer paid price.

National Spot Exchange: An Introduction NSEL commenced its live operations on15th October 2008 Recognized by Ministry of Consumer Affairs, Food & Public Distribution, Government of India. Obtained licenses from various state governments to facilitate online delivery based trading in various agri-commodities. NSEL holds a market share of over 98% of the Indian electronic commodity Spot market. It has more than 675 registered members operating through over 60000 trader work stations, across India. Government organizations like FCI , HAFED, MMTC, PEC, NAFED, APMARKFED, RAJFED, and CCI have been actively utilizing the Exchange platform for selling various commodities.


Compulsory delivery based spot contracts for various commodities Facilitates risk free and hassle free purchase and sell Provides services like quality certification, storage of goods and other customized value added services. Provides facility of bank finance against commodity deposits Linkage with futures contracts for the purpose of hedging and price risk management



Trading Mechanism Regular/Auction Contract with single day duration All confirm trade will result into compulsory delivery Fully automated screen-based trading system National reach 17 states An order driven trading system Transparent, Objective and Fair system for automatic order matching Identity of the trader undisclosed Flexibility for placing orders


About Sugar India stands 2nd in production (16%) & 1st in consumption (16%) of sugar in worldwide. Sugar production estimates to 24.3 Million MT for 2010-11 with cultivated in around 5 million hectares Major sugar producing states are UP(38%),MH(21%), TN(12%) , KN(8%) & others(21%-In Gujarat contribute 20 % with Annual Production of 12.8 lakh MT with 17 sugar factories)


Present Structure of Physical Markets

Mill

NSEL

Brokers / Commission Agents

NSEL

Traders

Whole-Seller

Retailers

End Consumerwww.nationalspotexchange.com

Sugar Contract SpecificationMarket Symbol Daily Contract Trading Period Auction Contract , Time: 12 noon to 1.00 PM & 3.30 PM To 4.30 PM (can be modified as per miller requirement) SGRS30.3 & SGRM303 All confirmed trades at the end of auction session will result in to Compulsory delivery. Mondays To Fridays except Exchange Specified holidays each month From 1st Calendar day up to 20th calendar day of the month 10/16 MT RS. Per Quintal 1 Rupees Ex- Factory Prices ..Inclusive All Taxes excluded sales Tax /VAT (If Any) 10 % & 10 % Delivery margin levied immediately after Auction session. 500 MTwww.nationalspotexchange.com

Trading Unit Base value Tick size Price quote Initial margin Maximum Order size

Forward Auction ProcessBuyer Submit/modify/cancel Buy quantity & Buy Price any time during first 50minutes of the auction session.

Seller Submit/modify/cancel Sale quantity & Floor Price ( Note- only quantitysubmitted by seller visible in market) during first 50 minutes of the auction session.

During last 10 minutes of the session Buyer Not allowed to reduce price or reduce quantity or cancel the trade, however,can increase price as well as quantity.

Seller Not allowed to increase the floor price or reduce quantity. However, canreduce the sell price and increase quantity. Order Cancellation will not allowed during the Modification session of auction (i.e last10 min.)

Trade matching logicAfter trading session , system will automatically match the sale & buy order at the highest possible price, if they are higher than floor price submitted by the seller.


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TradeConfimation : F8


Trade Confirmation Message


Sugar Operational Methodology Delivery Logic clause: Compulsory delivery. The successful party shall allowed Free- lifting period 4 days from the date of trade(No storage Charges) Buyer may lift the commodities within such free lifting period after payment In case of failure to lift the commodities after delivery period of 4 days exchange levy a storage charges of Rs.2/quintal from 5 th day onward till extended up to 8 days. In case of default of payment by buyer within the scheduled period i.e 4 days exchange will close out the defaulted quantity & the delivery margin of 10% paid by the buyer shall be forfeited. 90% of forfeited amount will gives to the seller & remaining 10% will keep exchange Pay out to the seller shall be released after delivery of commodity by way of RTGS/ECS transfer Part Delivery Mechanism: Exchange also gives facility for Early lifting of delivery by Buyers, subject to the commodities available with sellerwww.nationalspotexchange.com

Costs involved in Trading Sugar at NSEL Transaction Charges Rs. 100/- per lac of turnover from seller & Rs. 100 per lac of turnover from buyer. Invoice to the buyers : Seller will raise invoice in favour of the buyer on Excise & VAT paid basis, for which necessary buyer information will be provided by exchange. Settlement ScheduleParticulars Funds-Normal Commodity- Normal Day Up to T +3 Up to T +3 Pay-In Up to 1.00 PM Up to 2.00 PM Pay-out At 5.30 PM At 5.30 PM


Procedure of Exchange designated Ex factory delivery Sugar Stock of sugar sold will be on NET weight basis loaded into trucks excluding the tare weight of the PP Buyer will required to give their intention for lifting of delivery in exchange prescribed format Seller allow the delivery from Monday to Saturday between 9.00 AM to 4.00 PM. Seller has to deliver the mentioned quality (as is where is basis) sugar to buyer The Weighment charges shall be borne by Seller as well as loading charges.


National Spot Exchange: Participants


National Spot Exchange: The Process


Advantage of NSEL Platform

Desktop Monitoring Complete end to end solution A New distribution channel with trade guarantee A complementary market to derivative traders Timely disbursement of funds Transparency in transaction and settlement Pan India presence seller can get multi state buyer for trading


Membership Fee & Deposit structureParticularsMembership Admission Fee

TCM(In Rs.)

ITCM(In Rs.)

PCM(In Rs.)

TM(In Rs.)

15 Lac

25 Lac

25 Lac

5 Lac

Application Processing Fee

5000

5000

5000

5000 PCM/ITCM shall suitably collect 10000

Interest Free Security Deposit (50% amount by way of DD & 50% by way of FDR or BG Annual Subscription fee

15 Lac

40 Lac

40 Lac

25,000

50,000

50,000

Thank You

National Spot Exchange Limited , 102 A, Landmark, Suren Road, Chakala, Andheri (East), Mumbai - 400093. Tel: +91-22-67619900 Fax: +91-22-67619931 , E-mail: [email protected]


sugar ppt

Documents

delivery period

compulsory delivery

delivery margin

delivery of commodity

delivery mechanism

online delivery

sell price

early lifting of delivery