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Click Here - Contract Specification for Mentha Oil. Updated as on 21 November 2009.
Click Here - Contract Launch Calendar




Contract Specification for Mentha Oil Futures contract expiring from December 2009 onwards. Updated as on 21 November 2009
Type of Contract Futures Contract Specifications
Name of Commodity Mentha oil
Ticker symbol MENTHAOIL
Trading System NCDEX Trading System
Basis Ex-warehouse Chandausi (exclusive of all taxes, purchase tax, VAT, sales tax, mandi fee etc ). FSP will be calculated on the contract expiry day by taking weighted average prices of spot market during last three trading days from following Mandis:
Mandi Weightage
Sambhal 25%
Barabanki 30% (2% will be added to Barabanki Prices)
Chandausi 15%
Rampur 15%
Badaun 7.5%
Bareilly 7.5%
Unit of trading 360 kgs
Delivery unit 360 Kgs net packed in fully dipped galvanized iron drums of 180 Kgs each. The cost of drum, as approved by the Exchange, will be payable by the buyer
Quotation/base value Rs per Kg
Tick size Re 0.10 (10 paisa)
Quality specification
Appearance Liquid
Odour Strong Minty and Characteristic Pleasant
Colour Light /Pale Yellow
Solubility in Alcohols 1:4 to 6 volume in 70% alcohol
L-Menthol 68% as per GLC test (Detected by Packed column method)
Terpene 7.5% basis
Ester (As Methyl Acetate) 6% basis
Fat & Oils Negative
Additional Parameters Menthol Isomers = 6% maximum
Water & Solid sediments = 0.65% max
Total Menthol Content (TMC) = 70 to 79%
Optical Rotation = -33 degrees to -38 degrees
Refractive Index = 1.42-1.48 (at 25 degree celsius)
Menthofuran = Negative
PH = Neutral
Congealing Point = 21 to 23 degree celsius
Identification = Confirming to BP/USP
Specific Gravity = 0.80 to 0.91 (at 25 degree celsius)
High Boilers = Nil
GC Temperature:
Detector temperature = 240 degree
Injector Temperature = 240 Degree
Oven temperature = Starting 80 degree
Temperature Rise = 4 degree per minute

It should be free from any admixture such as edible oil, petroleum, mineral oil, sediments etc.

In order to check adulteration water test, paper test and alkali test will also be conducted which should confirm to be negative.
Quantity variation +/- 1 kg per drum.
Delivery center Chandausi
Additional delivery centres Barabanki, Sambhal, and such other centers as may be notified by the Exchange from time to time.
Hours of Trading As per directions of the Forward Markets Commission from time to time, currently-

Mondays through Fridays
Trading Hours - 10:00 AM to 05:00 PM

Saturdays
Trading Hours - 10.00 AM to 2.00 PM
The Exchange may vary the above timing with due notice.
Delivery specification During the period from E-14 to E-1, Seller & Buyer having open position are required to give their intention/notice to deliver to the extent of his open position. The delivery position would be arrived at by the Exchange based on the information to give/take delivery furnished by the seller and buyer as per the process put in place by the Exchange for effecting physical delivery. If the intention of the buyers/sellers matches, then the respective positions would be closed out by physical deliveries. If there is no delivery intention matching between sellers and buyers, then such intentions will get automatically extinguished at close of E-1 day. Intentions can be withdrawn during the course of E-14 to E-1 day if they remain unmatched.

Upon expiry (i.e E) of the contracts all the outstanding open positions should result in compulsory delivery.

The penalty structure for failure to meet delivery obligations will be as per circular no. NCDEX/TRADING-086/2008/216 dated September 16, 2008.
Opening of contracts Trading in a new month contract will open on the 10th day of the month in which near month contract is due to expire. If the 10th day happens to be a non-trading day, contracts would open on the next trading day
Tender Period Tender Date : T

Tender Period:

Tender period would be of 14 Calendar days during trading hours prior to the expiry date of the contract.

Pay-in and Pay-out: on a T+2 basis. If the tender date is T then, pay-in and pay-out would happen on T + 2 day. If such a T + 2 day happens to be a Saturday, a Sunday or a holiday at the Exchange, clearing banks or any of the service providers, Pay-in and Pay-out would be effected on the next working day.
Due date/Expiry date Expiry date of the contract:

Last day of the delivery month. If last day of month happens to be a holiday, a Saturday or a Sunday then the due date shall be the immediately preceding trading day of the Exchange, which is other than a Saturday.

The settlement of contract would be by a early delivery system of a maximum of 15 Pay-ins and Pay-outs or less including the last Pay-in and Pay-out which would be the Final Settlement of the contract
Closing of contract Clearing and Settlement of contracts will commence with the commencement of Tender Period by delivery through intention matching arrived at by the Exchange based on the information furnished by the seller and buyer respectively as per the process put in place by the Exchange for effecting physical delivery during the period from E-14 to E-1 prior to expiry. Upon the expiry of the contract all the outstanding open position would result in compulsory delivery.
No. of active contracts As per launch calendar
Price band Daily price fluctuation limit is (+/-) 3%. If the trade hits the prescribed daily price limit there will be a cooling off period for 15 minutes. Trade will be allowed during this cooling off period within the price band. Thereafter the price band would be raised by another (+/-) 1% and trade will be resumed.

If the price hits the revised price band (4%) again during the day, trade will only be allowed within the revised price band. No trade / order shall be permitted during the day beyond the revised limit of (+ / -) 4%
Position limits For Member - Maximum up to 1500 MT or 15% of market-wide open interest whichever is higher
For Clients - Maximum up to 300 MT

Hedge position as indicated vide Commission’s letter no. 4/4/2005-NCDEX/COMPL. Dated 4/10/2005
For near month contracts:
The near month limit will be applicable during the last 7 trading days of the expiry of a contract.

Member: Maximum up to 500 MT or 15% of the market-wide near month open position, whichever is higher
Client: Maximum up to 100 MT
Special margins Special margin of 10% of the value of the contract shall be applicable whenever there is a rise or fall in price from the first day's closing price beyond 20% and shall be payable by buyer or seller depending on whether prices rise or fall respectively. The margins shall stay in force so long as price stays beyond the 20% limit and will be withdrawn as soon as the price is within the 20% band
Premium/Discount Quality discount on L-Menthol-
Above 68% - Premium 1:1
Between 63% and 68% - Discount 1:1
Below 63% - Rejected

Tarpene
Between 7.5% – 9% - Discount 1:1 basis
Above 9% - Rejected

Ester(As Methyl Acetate)
= 6% basis, allowed till 6.5% maximum with 1:1 discount

Discount for Mentha oil acceptance at additional delivery centers
The Premium or discount for different locations shall be announced by the Exchange before launching of contract


Tolerance Limit :

Commodity Specifications Basis Acceptable quality range as per contract specification Permissible Tolerance
Appearance Liquid
Odour Strong Minty and Characteristic Pleasant
Colour Light /Pale Yellow
Solubility in Alcohols 1:4 to 6 volume in 70% alcohol
L-Menthol 68% as per GLC test (Detected by Packed column method) >68% to 63% +/-0.50%
Terpene 7.5% basis 7.5% to 9%
Ester (As Methyl Acetate) 6% basis 6% to 6.5%
Fat & Oils Negative
Max Tolerance (for all characteristics) +/- 0.5%


Annexure: Contract Launch Calendar
Contract launch date Contracts expiry date
November 19, 2009 January 2010, February 2010, March 2010
December 2009 April 2010
January 2010 May 2010
February 2010 June 2010

Contract Launch Calendar :-
Contract launch date Contracts expiry date
March 2010 July 2010
April 2010 August 2010
May 2010 September 2010
June 2010 October 2010
July 2010 November 2010
August 2010 December 2010




Contract Launch Calendar of Mentha Oil  :-

Contract Launch Month Contract Expiry Month
September 2010 January 2011
October 2010 February 2011
November 2010 March 2011
December 2010 April 2011
January 2011 May 2011
February 2011 June 2011






Members and market participants who enter into buy and sell transactions may please note that they need to be aware of all the factors that go into the mechanism of trading and clearing, as well as all provisions of the Exchange's Bye Laws, Rules, Regulations, Product Notes, circulars, directives, notifications of the Exchange as well as of the Regulators, Governments and other authorities.

Members and market participants trading on the Exchange in the commodity contracts shall be deemed to be aware of applicable laws and amendments thereof from time to time, including provisions and rates relating to the sales tax, value added tax APMC Tax, Mandi Tax, octroi, excise duty, stamp duty, etc., applicable on the underlying commodity of any contract offered for trading.

The Exchange shall not be responsible or liable on account of non compliance by any of the members and market participants of any such applicable laws or any amendments thereof including not being aware of rates of taxes, levies, etc., on the underlying commodity of any contract offered for trading.