Isabgol Seed ISABGOL Ex-warehouse Exclusive

NCDEX Isabgol Seed Futures

unjha
Position Limits
Aggregate Near Month
Member Client Member Client
Rs. Per Quintal 3 MT Rs.5 20th every month 10,000 1,000 2,500 250

Specification Basis
Red & Immature Seed 4.5% Max
Black, Dead & Damaged Isabgol Seed 2% Max
Foreign matter & organic matter-Sticks, dalkhi, Sand and silica 2% Max
Test Weight Weight of 100 seeds shall not weigh less than
0.17 gram and not more than 0.22 gram
Quality Moisture 8.00% Basis and acceptable up to 10% with
specification Moisture adjusted weight (MAW) of 1:1
Gola (Isabgol Seeds Kernels) 0.5% Max
Total ash, percent by mass, Max 3
Acid insoluble ash, percent by mass 0.6
Mould and yeast count, per g, Max 1000
Salmonella Absent (in 10 g)
E. coli Absent (in 1 g)

Benchmark Futures contract for Isabgol Seed

Efficient and transparent price discovery
Connects the entire value chain
Best hedging tool for a Ginner
Hedging and price risk management tool for Isabgol Seed
value chain
GENERAL INTRODUCTION – ISABGOL ISABGOL FUTURES MONTHLY ANNUALISED PRICE VOLATILITY
 It is originated from Western Asia & is useful for its medicinal properties from seeds.
 It is primarily a Rabi season crop sown during Nov/Dec and harvested during Feb/Mar. ISABGOL YEARLY ANNUALISED PRICE VOLATILITY
 In India the major producing states of Isabgol are Gujarat, Rajasthan & Madhya Pradesh. 50%
 India is the only major producer and exporter of Isabgul. Its major importers are U.S.A,
40%
Germany & Italy.
30%

Sowing Growth Period Harvesting Peak Period Lean Period 20%

10%
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
0%
2018-19 2019-20 2020-21 2021-22 2022-23

Processors/Hedger locks PRICE RISK HEDGING Processors/Hedger locks

in the Isabgol Seed Futures in the Isabgol Seed Futures
price at Rs.18000/quintal price at Rs.18000/quintal
for a long position A gain of Rs. A gain of Rs. A gain of Rs. A gain of Rs. for a short position
3000 in Spot 3000 in Futures 3000 in Futures 3000 in Spot
market.
Long Hedge
market. market. Short Hedge market.

Profit/ Loss in Rs per Quintal

4000
If the price of Isabgol Seed 4000 If the price of Isabgol Seed
Profit/ Loss in Rs per Quintal

3000 Realized Price

decreases in the 3000 Realized Price decreases in the
physical market, the gain 2000 physical market, the loss
2000
in the physical market is 1000 in the physical market is
1000
offset by the loss in the 0 0 offset by the gain in the
Futures market 21000 20000 19000 18000 17000 16000 15000 -1000 21000 20000 19000 18000 17000 16000 15000 Futures market
-1000
-2000 -2000
-3000 -3000
If the price of Isabgol Seed -4000 If the price of Isabgol Seed
-4000
increases in the physical increases in the physical
market, the loss in the Long Short Physical Long Physical Short market, the gain in the
A loss of Rs. A loss of Rs.
A loss of Rs. A loss of Rs.
physical market is offset 3000 in Futures 3000 in Spot 3000 in Spot 3000 in Futures physical market is offset
by the gain in the market. market. market. market. by the loss in the
Futures market Futures market
Graphs : For illustrative purposes only

USES OF ISABGOL
Isabgol husk is majorly used by pharmaceutical industry for curing constipation, Diarrhea, cholesterol, Weather conditions
Type II Diabetes, etc.
Export demand of Isabgol husk
Apart from its husk medicinal properties, it is also being used in food industry especially in ice creams,
biscuits and candies. Carry over stock
The main by-product of isabgol husk is, • Lali: Used as cattle feed. • Chito: Used as Pig feed. • Khakho:
It is used to prevent ice slipping • Golaisab: Used as cattle feed