NCDEX revives black pepper futures to boost India's price discovery

Published 7 July 2026 · india

NCDEX has relaunched black pepper futures, reviving one of its oldest commodity contracts after more than a decade and seeking to re-establish India as a

NCDEX has relaunched black pepper futures, reviving one of its oldest commodity contracts after more than a decade and seeking to re-establish India as a global benchmark for price discovery in the spice.The exchange said India remains one of the world's largest producers, consumers and processors of black pepper, but has lacked an active regulated derivatives contract despite the commodity's significance. With no active global derivatives benchmark for black pepper currently in existence, the relaunch is expected to provide farmers, traders, exporters and processors with a transparent platform for hedging price risks and discovering market-driven prices.The contract will be traded in lots of one tonne, quoted in rupees per kilogram, with compulsory delivery at warehouses in Kochi, India's principal pepper trading and processing hub.

Kochi has been designated as the sole delivery centre, with deliveries permitted within a 60-km radius of the city's municipal limits.Historically, black pepper futures on NCDEX witnessed strong participation from market participants across the value chain, with delivery at contract expiry consistently touching or nearing 100%, reflecting the contract's close linkage with the physical market.The relaunch comes at a time when commodity markets are witnessing heightened price volatility amid changing global supply chains and weather-related production risks. Industry participants believe a regulated domestic benchmark could improve price transparency and offer an effective risk-management tool for the spice trade."India is one of the world's largest producers and consumers of black pepper, yet we have gradually ceded our role in global price discovery for the commodity," said Arun Raste, managing director and CEO of NCDEX.

"The relaunch of Black Pepper Futures is an effort to bring that benchmark home by creating a transparent, credible and India-centric reference price for the trade. A robust derivatives market will help farmers, processors, exporters and traders manage volatility more effectively while strengthening India's position in the global spice ecosystem."Kedar Deshpande, Chief Business Officer at NCDEX, said the absence of an active global

derivatives benchmark had left a significant gap in the market. "The relaunch provides the entire pepper value chain—from growers to exporters—with a regulated platform for pricing and risk management, while reinforcing India's position in global spice trade," he said.The launch is also part of NCDEX's strategy to deepen its presence in southern India and expand its commodity offerings linked to regional agricultural value chains.