| Barley futures contracts were introduced into the | | | | Barley with moisture more than 12%, damaged |
| commodity market on the 11th of December | | | | grain more than 3.5%, broken kernels more than |
| 2006 in the National Commodity and Derivatives | | | | 3% and TCW below 38gm is rejected by the |
| Exchange Ltd. (NCDEX). Barley in the Indian | | | | exchange. The exchange imposes a penalty of |
| industry is primarily used for making malt and malt | | | | minimum 5% of final settlement price incase of |
| extract. Trading in a new month contract opens | | | | failure of delivery obligation. |
| on the 10th day of the month; if the 10th day | | | | All contracts in barley on the NCDEX are basis |
| happens to be a non trading day then the | | | | delivery center Jaipur. Additional delivery centers |
| contract opens on the next day. Three contracts | | | | of Sri Madhopur at par and Bulandshar and Rewari |
| opened initially were to expire in March, April and | | | | at a premium or discount as announced by the |
| May 2007. Each contract expires on the 20th day | | | | exchange from time to time are also available. It |
| of the delivery month. | | | | should be noted that the delivery center can be |
| Trading on the exchange uses 10MT as its unit of | | | | up to fifty kilometers from the municipal limits. |
| trade and each delivery unit is 10 MT packed in | | | | The price band for trading has a fluctuation limit |
| 80kg sound jute bags net weight basis. Quotation | | | | of ±4%. However if the trade hits this |
| on the exchange is in Rs. per quintal. | | | | prescribed daily price limit the exchange gives a |
| Upon expiry of the contract, all outstanding | | | | cooling off period for 15 minutes after which |
| positions on the exchange result in compulsory | | | | trading resumes. Trade within the price band can |
| delivery. The specification acceptable for delivery | | | | continue during these 15 minutes. Thereafter the |
| in the NCDEX exchange is the same as that of | | | | price band will be raised by another ±2% |
| barley used for making malt and malt extract i.e. | | | | and trade will be resumed. If the price band is hit |
| 10% moisture, 2% foreign matter, 2% broken | | | | again the exchange will not allow any trade |
| kernels, 40gm TCW and 2% damaged grains. The | | | | outside the revised price band i.e. ±6%. |
| damaged grains include discolored grains, with | | | | At present contracts for the month of May, June |
| infested damaged kernels not exceeding 1% max | | | | and July 2007 are open on the exchange. The |
| on deposit of the grain and 1.5% on withdrawal. | | | | trading range for May, June and July as on date is |
| The quantity variation allowed is plus minus five | | | | between Rs.845 – Rs. 835, Rs.855- Rs. 840 |
| percent. | | | | and Rs.865 – Rs.845 respectively. |