SEBI allows guarseed options on NCDEX

Commodity and capital market regulator SEBI has given NCDEX permission to launch options trading in guarseed, the largest volume generating in the agriculture-focused commodity exchange. Guarseed contracts log in a daily trade volume of about ₹400-600 crore. The domestic market for guarseed is valued at about ₹300-500 crore. Guarseeds are processed to guar gum and exported to various countries which are into oil and gas exploration. The export market for guar gum is pegged at ₹3,000-4,000 crore. India accounts for 80-85 per cent of the total global production of the commodity and sets the price for guar products.