NCDEX Isabgol Futures Clocks 102 Tonnes Volume On First Day Of Trade

The more than Rs 370-crore isabgol (psyllium husk) market has a new entrant, with its maiden futures contract at the National Commodity and Derivatives Exchange (NCDEX) clocking 102 tonnes and an open interest of around 69 tonnes getting valued at over Rs 2.5 crore on the first day of trade.

The contract was launched on Wednesday, which is a first for the exchange although isabgol had been traded in futures markets in other exchanges in the past.

According to the exchange, there was impressive participation from farmer-producer organisations, processors, traders, and others on the first day of trade itself.

NCDEX Isabgol seed futures contracts are available for trading in four months from May to August, which is the peak harvest time for the crop.

Isabgol is sown in around November and harvesting starts in February. April-June is the peak arrival period for isabgol.

Isabgol refers to a type of dietary fibre obtained from seeds of the plant Plantago ovata. It is widely cultivated in Asia, the Mediterranean region, and North Africa.

It is commonly known as a remedy for relieving constipation and supporting weight loss by clearing out toxins from the digestive tract.

In FY24, the country is expected to produce 202,500-210,000 tonnes of isabgol (2.7-2.8 million bags), which is 8-10 per cent more than the all India average production of 187,000 tonnes (2.5 million bags approximately) in FY23.

The crop is grown in a big way in Gujarat, Rajasthan, and Madhya Pradesh. Unjha, in Gujarat, the traditional trading hub of isabgol, is also the delivery centre for NCDEX isabgol seed futures contracts.

The contract, in accordance with the exchange order, will be a compulsory delivery-based one and traded at prices at the ex-warehouse, Unjha basis centre, exclusive of goods and services tax.

According to market sources, India is the largest exporter of isabgol, accounting for more than 85 per cent of global consumption.

However, despite having a near-monopoly in this medicinal agricultural produce, Indian growers as well as exporters are often exposed to volatility in prices.

Sandy soil and dry, sunny and wintry weather provide a conducive environment for isabgol cultivation.

Gujarat and Rajasthan have vast semi-arid regions and conditions ideal for its cultivation, which explains domestic production being largely limited to these two states.

Until the early 1980s, the market for it was confined to domestic consumers, but with information about its intrinsic medicinal and nutritional value spreading across the globe, isabgol witnessed a surge in exports.

Acreage increased and many took to farming this crop to make the best of the opportunities.

Trade sources say in India, the high prevalence of gastrointestinal disorders due to unhealthy food patterns and sedentary lifestyles is primarily driving the isabgol market.

Additionally, the rising occurrences of the irritable bowel syndrome, particularly among the geriatric population, are bolstering the consumption of isabgol.

Based on the form, the isabgol (psyllium husk) market in India has been divided into “whole”, “powder”, and “dust”. Among these, “whole” has predominance in the market.

Some of the major players in the India isabgol (psyllium husk) market include Baidyanath, Dabur India, Giriraj Enterprises, and Karnataka Antibiotics.