Parameters for Performance Review of Commodity

SOY REF OIL

1. Background
a. Brief about the commodity such as sample picture, lifecycle and various varieties/grade of the
commodity found in India

Soybean oil is a vegetable oil extracted from the seeds of the

soybean (Glycine max). It is one of the most widely consumed
cooking oils. As a drying oil, processed soybean oil is also used
as a base for printing inks (soy ink) and oil paints. Per 100 g,
soybean oil has 16 g of saturated fat, 23 g of monounsaturated
fat, and 58 g of polyunsaturated fat. The major unsaturated fatty
acids in soybean oil triglycerides are the polyunsaturated alpha-
linoleic acid (C-18:3), 7-10%, and linoleic acid (C-18:2), 51%;
and the monounsaturated oleic acid (C-18:1), 23%. It also
contains the saturated fatty acids stearic acid (C-18:0), 4%, and
palmitic acid (C-16:0) 10%.

Crop Cycle: N/A

Life Cycle: Major Varieties /Grade

Value Chain of the Commodity
Major Varieties
Soybean
processors/Refining N/A
unit
NCDEX Quality Parameters

Whole Seller/ Moisture & insoluble impurities, 0.10 % Max,

Repacker Color: Lovibond Y+5R, 51/4” cell Max: 12 Unit,
Refractive Index at 40C: 1.4650-1.4710,
Specific Gravity at 30C 25/25: 0.917-0.921,
Saponification Value: 189-195,
Retailers Iodine Value (Wijs): 120-141,
Unsaponifiable matter, % by mass, Max: 1.5,
FFA, % Max: 0.25,
Flash point, Pensky Martin Method, C, Min:
250,
Consumer Acid Value – Not more than 0.50,
Phosphorous – Not more than 0.02,
Hexane – Not more than 5 ppm

Test for argemone oil shall be negative.

It shall be clear, free from rancidity, adulterants,
sediments, suspended and any other foreign
matter, separated water, added coloring and
flavoring substances and mineral oil
Table: Reference Years for Commodities

Sl. No. A B C
Kharif
Crop Season Kharif Rabi
(Long Duration crop)
Paddy, Maize, Bajra,
Moong, Soybean, Guar Wheat, Barley, Chana, RM
Crops Castor and Turmeric
seed, Kapas, Sesame Seed, Coriander, Jeera
Seed
Guar gum, Soybean meal,
Relevant Processed
Soy oil, Cotton, Cotton Castor Oil -
commodities
seed Oil cake, Gur, CPO
Sowing Time July onwards July onwards October onwards
Harvesting Time Oct onwards Jan onwards March onwards
Reference Year
Financial Year 2021-22 (Apr-Mar)
Corresponding Years
Production Year (PY) 2021-22 (July-Sept) 2020-21(July-June) 2020-21(July-June)
Marketing Year (MY) 2021-22 (Oct-Sept) 2021-22 (Jan/Feb-Dec/Jan) 2021-22 (Mar/Apr - Feb/Mar)
Calendar Year (CY) 2021 (Jan-Dec) 2021 (Jan-Dec) 2021 (Jan-Dec)
Current Financial Year = Current Financial Year = Current Financial Year =
Relationship b/w Current Production Year = Previous Production Year = Previous Production Year =
Various Years Current Marketing Year = Current Marketing Year = Current Marketing Year =
Calendar Year Current Calendar Year Current Calendar Year
FY 2021-22 = PY 2021-22 FY 2021-22 = PY 2020-21 = FY 2021-22 = PY 2020-21 =
Example
= MY 2021-22 = CY 2021 MY 2021-22 = CY 2021 MY 2021-22 = CY 2021

Explanatory Notes:

 India is a vast country and various crops are sown and harvested at different point of time. However,
two major crop seasons, are there i.e. Kharif & Rabi. Apart from it, Zaid/Summer season is also there.

 Crop seasons are classified based upon sowing time. Normally Kharif season sowing starts from mid-
June/July and new crop arrivals begin from Oct/Nov. However, early/late sowing/harvesting also takes
place. Rabi season sowing usually takes place mainly from October/November and harvesting starts
from March/April. Early/late sowing/harvesting also takes place. Summer crops/Zaid crops are short
duration crops mainly sown during January-March and harvested during April-June.
 “Production Year” is considered as “July to June”. With the start of monsoon rains during June/July the
sowing of Kharif season starts and they are harvested during Sept/Oct. From Oct onwards the sowing
of Rabi season crops starts and harvesting usually takes place during March/April. Thus, a single
production cycle completes between July-Sept period covering Kharif, Rabi and Zaid crops. Thus
production year remains same for all season crops and the period corresponds to July-Sept.

 “Marketing Year” for each crops starts from beginning of the harvest time i.e. from start of new crop
produce arrivals in the market. Thus, for Kharif crops Marketing Year is generally considered as
“October to September”, while for Rabi crops Marketing Year is considered as “April to March”.
However, Marketing Year may vary slightly for some of the crops depending upon early/late
maturity/harvesting.
 For processed commodities, their production starts after the start of new season crop arrivals of their
underlying crop.

b. Commodity fundamentals and balance sheet as per the following format (to be prepared based
on publicly available information on best effort basis):

Table - Fundamentals & Balance sheet (quantity)

(In Lakh Tonnes)

Global Scenario Previous FY (2020-21) Current FY(2021-22) (P)
Opening Stocks 52 48
Production 592 590
Imports 118 119
Total Supply 761 757
Exports 126 124
Domestic Consumption 587 593
Closing Stocks 48 40
Source: USDA (April 2022); P= Provisional,
Please refer to Table entitled “Reference Years for Commodities” to know type of years corresponding to
financial year.

(In Lakh Tonnes)

Indian Scenario Previous FY (2020-21) Current FY(2021-22) (P)
Opening Stocks 1.42 1.50
Production 17.10 18.36
Imports 32.46 36.50
Total Supply 50.98 56.36
Exports 0.11 0.15
Domestic Consumption 49.37 54.00
Closing Stocks 1.50 2.21
Source: USDA (April 2022); P= Provisional,
Please refer to Table entitled “Reference Years for Commodities” to know type of years corresponding to
financial year.

In Lakh Tonnes
Top 10 Major Producing Countries Top 10 Major Consuming Countries
Current Current
Rank Previous FY Previous FY
Country FY(2021-22) Country FY(2021-22)
(2020-21) (2020-21)
(P) (P)
1 China 167 160 China 178 173
2 United States 114 119 United States 106 114
3 Brazil 90 91 Brazil 80 75
4 Argentina 79 79 India 49 54
5 European Union 30 30 European Union 24 25
6 India 17 18 Argentina 20 21
7 Mexico 11 12 Mexico 13 13
8 Russia 8 8 Bangladesh 12 13
9 Egypt 7 7 Egypt 11 10
10 Thailand 5 5 Algeria 8 8
Others 63 61 Others 86 87
World Total 592 590 World Total 587 593
Source: USDA (April 2022); P= Provisional,
Countries are arranged in descending order based on the figure in Current FY (2021-22)
Please refer to Table entitled “Reference Years for Commodities” to know type of years corresponding to
financial year.

In Lakh Tonnes
Top 10 Major Exporting Countries Top 10 Major Importing Countries
Current Current
Previous FY Previous FY
FY(2021-22) FY(2021-22)
(2020-21) (2020-21)
Rank Country (P) Country (P)
1 Argentina 61 59 India 32 37
2 Brazil 13 18 China 12 11
3 European Union 11 11 Bangladesh 7 8
4 United States 8 8 Algeria 6 6
5 Russia 6 6 Peru 6 6
6 Bolivia 5 4 Morocco 5 5
7 Paraguay 6 3 European Union 5 5
8 Ukraine 2 2 Korea, South 4 4
9 Turkey 3 2 Egypt 4 4
10 Thailand 1 1 Colombia 3 3
Others 11 11 Others 33 31
World Total 126 124 World Total 118 119
Source: USDA (April 2022); P= Provisional,
Countries are arranged in descending order based on the figure in Current FY (2021-22)
Please refer to Table entitled “Reference Years for Commodities” to know type of years corresponding to
financial year.

Top 10 Major producing states in India

(In Lakh Tonnes)

Top 10 Major producing states in India
Rank States Previous FY (2020-21) Current FY (2021-22) (P)
NA NA NA
NA: Data is not available in the public domain.
It is a processed commodity. Thus, no such categorization is applicable for this commodity. Madhya
Pradesh is the major Soybean producing state in the country contributing to nearly 46% percent of the total
production, followed by Maharashtra 39% and Rajasthan 8% [Triennium Avg. (Crop Year 2018-19 to 2020-
21)].

c. Major changes in the polices governing trade in the spot markets of the commodity

Date Major Policies governing trade and related changes

The central government has directed states and UTs to monitor prices of 22
essential commodities, especially pulses, oilseeds, vegetables and milk in order
19-May-21
to discourage hoarding activities and taking undue advantage of Covid-19
situation.
Government increased the MSP of Soybean for marketing season 2021-22 by
09-Jun-21
1.80% to 3950 Rs/qtl. from 3880 Rs/qtl. last year.
The Solvent Extractors’ Association (SEA) of India asked the government to allow
23-Jul-21 the import of soybean meal to help the domestic poultry industry to cool down the
increased prices of Soy meal.
The Department of Animal Husbandry (DHAD) notified the Customs department
11-Aug-21
that soymeal and oil cake from GM soy would be permitted for import.
The Ministry of Commerce in an Office Memorandum directed to facilitate import
16-Aug-21
of 12 lakh tonnes of `GM Soya de-oiled cake with immediate effect.
 The govt. relaxed the import policy rules to allow imports of 12 lakhs metric tonne
of crushed and de-oiled GM soya cake (only non-living organism) from Nhava
24-Aug-21
Sheva port and LCS Petrapole, till 31st October, 2021 or until further orders,
whichever is earlier.
The Govt. allowed GM soya cake imports via Mumbai, Tuticorin and
03-Sep-21
Vishakhapatnam Sea Ports in addition to Nhava Sheva Port.
13-Sep-21 The Govt. extended import window for Soymeal
The central govt. imposed stock limits on all Edible oils and oilseeds for the period
Oct 08, 2021 till Mar 31, 2022. The stock limit will be decided by the respective
08-Oct-21
States/UT on the basis of available stock and consumption pattern of the
State/UT.
12-Oct-21 UP Govt. imposed stock limits on edible oil and oilseeds
The central govt. directed States and UTs to speed up the process of issuing stock
25-Oct-21 limit notification before the festive season and ensure that the consumers get the
benefit of the same.
Fisheries Ministry writes a letter to Commerce Minister to consider request of
23-Nov-21
Poultry Breeder Association demand
Fisheries Ministry writes a letter to DGFT to consider request of Poultry breeder
24-Nov-21
Association demand
The state govt. of Rajasthan imposed stock limits on Edible oils and oilseeds w.e.f.
26-Nov-21
Nov 26, 2021 till Mar 31, 2022.
Maharashtra Deputy Chief Minister Mr. Ajit Pawar Letter to Mr. Piyush Goel-
07-Dec-21 Commerce Minister regarding imposition of ban on import of soybean meal as it
is hurting interest of the Maharashtra soybean farmers.
Ministry of consumer affairs held a meeting with Edible Oilseeds/Oil associations
10-Dec-21
about passing the benefits of duty cut to the end consumers
Ministry of Finance, Department of Economic affair wrote to SEBI to suspend
19-Dec-21 futures trading in Chana, mustard seed, crude palm oil, moong, paddy (Basmati),
wheat and soybean and its derivatives with immediate effect.
SEBI in its press release (PR No 36/2021) directed suspension of futures and
options trading for one year in a host of agricultural commodities including chana,
mustard seed, crude palm oil, moong, paddy (Basmati), wheat and soybean and
its derivatives.The suspension of trading in these commodities came into effect on
20-Dec-21
Monday (20-Dec) following a communication from the Department of Economic
Affairs. No fresh positions (including intra-day) will be allowed in respect of Futures
and Options contracts of these commodities. No new Futures and Options
contracts will be launched till further notice in any of the commodities.
Maximum stock of 90 days’ production of Soya Meal, as per daily input production
capacity of Plant/Miller/Processor, defined in its IEM (The storage location should
23-Dec-21 be declared). Trading company/Trader/Private Chaupals: Only Government
registered enterprise, maximum stock of 160 MT with a defined and declared
storage location.
Govt. released Gazette notification on Incorporation of Soymeal under the
Essential Commodities Act, 1955 with immediate effect and this shall remain in
23-Dec-21
force for a period up to 30th June, 2022 from the date of its publication in the
Official Gazette.
Department of Food and Public Distribution has issued a stock limit notification
(S.O. 452(E)) on oilseed and edible oil. Govt. has imposed stock limit on edible oil
03-Feb-22 and oil seed with specified quantity till 30th June22. However, six states, Uttar
Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar are
exempted from the quantities specified, as they have already imposed stock limit.
Department of Food and Public Distribution has issued a stock limit notification
(S.O. 1509(E)) on oilseed and edible oil. Govt. has extended stock limit period on
30-Mar-22
edible oil and oil seed with specified quantity from June 30, 2022 to 31st Dec 2022.
In the notification govt. has also directed that that Edible Oils and Edible Oilseeds
 stock to be regularly declared and updated on the portal of this Department i.e.
Department of Food & Public Distribution by the participants. As per the
notification stock limit will be applicable on all Edible Oils and Oilseeds put
together for all States/Union Territories.

d. Geo political issues in the commodity and its impact on Indian scenario.

Date Event Key Details Key Implications/Impact

23-Mar-21 Suez Canal The Suez Canal, a critical shipping Supply Chain bottleneck with container
traffic jam artery that connects the shortage and port congestion. Freight
between 23 Mediterranean and Red Seas through rate hike.
March to early Egypt, was blocked after a large cargo
hours of 29 ship ran aground while passing The congestion of the Suez Canal may
March caused through it bringing traffic on the busy delay nearly 7% of seaborne U.S. major
by stuck ship trade route to a halt. grain shipments, according to USDA
and vessel data analysed by
Bloomberg. More than 80% of the
impacted grain shipments are corn, with
close to 60% of it on six vessels headed
to China. However, Moderate effect on
prices were observed as this Jam was
temporary in nature.
27-Jan-22 Indonesia In order to control the palm oil prices This Policy has affected the supply of
imposed in the domestic market, Indonesian palm oil in the global market. It was
mandatory govt. made a policy that palm oil reported that sellers/exporters quoted
domestic sales exporters have to sell 20% of their higher rates for selling / exporting the
for palm oil total export at lower prices in the 80% of the oil in order to compensate
domestic market. This also has for the loss incurred while selling 20%
affected the supply of palm oil in the of the Export quota at lower rates in the
market. domestic market.
24-Feb-22 Russia’s Russian President Vladimir Putin on Russia’s invasion on Ukraine has
Invasion on Feb 24, 2022 informed that he has raised supply concern for wheat, corn
Ukraine launched a military operation in and edible oil supply in the Global
Ukraine. market. Further. it is feared that it may
lead to a food crisis on the global scale.
Ukraine is the largest source for
sunflower oil import in India. Further,
Russia and Ukraine are key source of
world wheat product and trade. Prices
of edible oils and grains are feared to
get impacted from it.
09-Mar-22 Indonesia In order to control palm oil prices in This revised policy is expected to
revised quota the local market, Indonesia revised further squeeze the supply of palm oil in
for mandatory quota from 20% to 30% for the global market adversely impacting
domestic sales Indonesian companies to sell their the prices.
for palm oil planned exports of crude palm oil and
from their olein at home under a scheme known
export as Domestic Market Obligation (DMO)
obligations at lower prices (fixed by Govt.).The
new restriction will stay in place for at
least six months.
Ongoing China imposed China Imposes Lockdown In Largest Agriculture commodity export to China
since Mar lockdown City- Shanghai Amid Biggest has slowed down due to prevailing
28, 2022 Outbreak Of COVID In 2 Years lockdowns
2. Trading related parameter
a. Monthly and Annual traded volume (quantity in appropriate units)
Monthly Traded Quantity
Month year Traded volume (MT)
Apr 2021 9,64,060
May 2021 8,91,930
Jun 2021 11,12,255
Jul 2021 8,81,585
Aug 2021 6,44,395
Sep 2021 4,82,030
Oct 2021 6,43,980
Nov 2021 3,82,320
Dec 2021 2,98,335
Jan 2022 10,950
Feb 2022 445
Mar 2022 -

Annual Traded Quantity

Symbol Traded volume (MT)
SYOREF 63,12,285

b. Annual traded volume as proportion of total deliverable supply (quantity in appropriate units)

Symbol Traded volume (MT) Deliverable supply( MT) Proportion

SYOREF 63,12,285 56,36,000 112%

c. Annual traded volume as proportion of total annual production (quantity in appropriate units)

Symbol Traded volume (MT) Production( MT) Proportion

SYOREF 63,12,285 18,36,000 344%

d. Annual average Open interest as proportion of total production

Symbol Avg Open Int (MT) Production( MT) Proportion

SYOREF 10,877 18,36,000 0.6%

e. Annual average Open interest as proportion of total deliverable supply

Symbol Avg Open Int (MT) Deliverable supply (MT) Proportion

SYOREF 10,877 56,36,000 0.2%

f. Monthly and Annual value of trade (in Rs. Crores)

Month Years Traded Value (in Cr.)

Apr 2021 13,011
May 2021 12,635
Jun 2021 14,371
Jul 2021 11,763
Aug 2021 8,941
Sep 2021 6,442
 Oct 2021 8,293
Nov 2021 4,674
Dec 2021 3,536
Jan 2022 131
Feb 2022 6
Mar 2022 -

Yearly
Symbol Traded Value (in Cr.)
SYOREF 83,803

g. Monthly and Annual quantity of delivery (in appropriate units)

Expiry Month Years Total Delivery(MT)

Apr 2021 Nil
May 2021 Nil
Jun 2021 Nil
Jul 2021 Nil
Aug 2021 Nil
Sep 2021 Nil
Oct 2021 Nil
Nov 2021 Nil
Dec 2021 Nil
Jan 2022 Nil
Feb 2022 Nil
Mar 2022 Nil

Annual
SYOREF Nil

h. Monthly and Annual value of delivery (in Rs. Crores)

Expiry Month Years Symbol Value in Cr

Apr 2021 SYOREF Nil
May 2021 SYOREF Nil
Jun 2021 SYOREF Nil
Jul 2021 SYOREF Nil
Aug 2021 SYOREF Nil
Sep 2021 SYOREF Nil
Oct 2021 SYOREF Nil
Nov 2021 SYOREF Nil
Dec 2021 SYOREF Nil
Jan 2022 SYOREF Nil
Feb 2022 SYOREF Nil
Mar 2022 SYOREF Nil

Yearly
Symbol Value in Cr
SYOREF Nil
i. Monthly and Annual Average Open Interest (OI) (in appropriate units)

Month Years Avg Open Int (MT)

Apr 2021 50,816
May 2021 46,394
Jun 2021 49,931
Jul 2021 47,805
Aug 2021 40,153
Sep 2021 37,257
Oct 2021 46,419
Nov 2021 54,109
Dec 2021 44,701
Jan 2022 14,513
Feb 2022 406
Mar 2022 10

Symbol Avg Open Int (MT)

SYOREF 10,877

j. Annual average volume to open interest ratio

Avg,. of traded volume to

Symbol Open interest
SYOREF 67.24%

k. Total number of unique members and clients who have traded during the financial year

Member Count Client Count

139 3,348

l. Ratio of open interest by FPOs/farmers/Hedge/VCP positions to total open interest (Annual average
as well as maximum daily value)

Annual average of ratio of open interest by FPOs/farmers/Hedge/VCP positions to total open interest
Symbol VCPs/ Hedger
SYOREF 40.82%

Maximum daily value of ratio of open interest by FPOs/farmers/Hedge/VCP positions to total open interest
Symbol VCPs/ Hedger
SYOREF 47.34%

It is calculated on the day when commodity has highest open interest during the year.
Commodity wise client categorization is as per category details as provided by the members.

m. Number of unique FPOs / farmers and VCPs/hedgers who traded in the financial year

88

n. Algorithmic trading as percentage of total trading

4.61%
 0. Delivery defaults
i. Number of instances
0
ii. Quantity involved
Nil
iii. Value involved
Nil

3. Price movements
a. Comparison, correlation and ratio of standard deviation of Exchange futures price vis-à-vis international
futures price (wherever relevant comparable are available).
Correlation- 0.32
Standard Deviation- 0.61
Comparison

Price Comparison
1800 90
1700 80
1600 70

Int'l Price
1500 60
Price

50
1400
40
1300 30
1200 20
1100 10
1000 0

Date

Futures Spot Int'l Prices

b. Comparison, correlation and ratio of standard deviation of Exchange futures price vis-à-vis international
spot price (wherever relevant comparable are available) and domestic spot price (exchange polled
price).
Not Available
c. Correlation between exchange futures & domestic spot prices along with ratio of standard deviation.
Correlation- 0.55
Standard Deviation- 1.13
d. Correlation between international futures & international spot prices along with ratio of standard
deviation (wherever relevant comparable are available).
Not Available
e. Comparison of Exchange polled price and mandi price (in case of agricultural commodities) / other
relevant price (in case non-agricultural commodities) at basis centre.
Not Available
f. Maximum & Minimum value of daily futures price volatility and spot price volatility along with disclosure
of methodology adopted for computing the volatility. (Volatility calculated by Square root of Standard
Deviation of daily returns for the period from 1 April 2021 to 31 March 2022)
 Futures Spot
Volatility
Month Value Month Value
Max Jun 0.020404 Mar 0.016163
Min Jan 0.006388 Jan 0.005246

g. Number of times the futures contract was in backwardation/contango by more than 4% for the near
month contract in the period under review
Contango 1
Backwardation 0

4. Others parameters
a. Qualitative and quantitative measure for Hedge effectiveness ratio (Methodology in Annexure I) and
basis Risk (Volatility of Basis) along with disclosure of methodology adopted for such calculations.
(Volatility calculated by of Standard Deviation of daily returns for the period from 1 April 2021 to
31 March 2022

Basis Volatility 9.366318

Period Hedge Efficiency (in Percentage)

FY 2021-22 58.83%

b. Details about major physical markets of the commodity vis-à-vis market reach in terms of availability
of delivery centers (information to be provided state-wise and UT-wise).

Refined Soy oil is produced in domestic market, as well as, it gets imported. The major imports takes place
at Kandla, Mundra, JNPT, and Haldia ports. The major trading center for Refined Soy oil are Kandla, Rajkot,
Ahmedabad, Indore, Neemuch, Ujjain, Dewas, Akola, Dhule, Nagpur, Latur, Mumbai, Kota, Delhi, Kolkata
etc.

Following are the port wise imports figures for Soybean oil.
(In MT)
Oil Year 17- Oil Year 18- Oil Year 19- Oil Year 20- Oil Year 21-
Port Location 18 19 20 21 22*
Haldia 7,41,502 7,63,570 7,68,891 6,88,839 3,80,349
Kandla 16,97,169 15,42,637 17,73,863 12,72,885 10,34,823
JNPT 2,59,257 2,64,905 2,67,662 3,47,338 1,37,906
Mundra 3,38,112 5,01,196 4,07,900 3,87,333 2,61,106
Other Ports 11,000 21,805 1,65,738 1,69,224 1,19,620
Total 30,47,040 30,94,113 33,84,054 28,65,619 19,33,804
Source: Sea of India
* Oil import from November 2021 to March 2022
* Oil year is considered from November to October

c. Details about major physical markets of the commodity and average Open Interest for each month
generated from those regions.
Note – The OI for each month is classified based on the Member level. The Average OI is on gross
level (Long OI + Short OI)

State GUJARAT MAHARASHTRA WEST BENGAL

 Apr-21 9061 44370 168
May-21 10589 35491 45
Jun-21 19800 36861 139
Jul-21 15106 38172 48
Aug-21 7866 37337 15
Sep-21 3897 34616 19
Oct-21 15973 34099 37
Nov-21 16250 53830 84
Dec-21 16630 44258 57
Jan-22 7073 12802 74
Feb-22 18 244 0
Mar-22 0 0 0

d. Details, such as number and target audience, of stakeholders’ awareness programs carried out by the
exchange.
Following list of Awareness programme, Stakeholder engagement programme has conducted for FY
2021-22.
Sr. Number Programme Location Number of
Participants
1 Trade Dynamics of Soy Complex Virtual 56
2 Investors Education Programme Virtual 17
3 Investors Education Programme Virtual 15
4 Investors Education Programme Virtual 5
5 Investors Education Programme Virtual 3
6 Investors Education Programme Virtual 6
7 Investors Education Programme Virtual 29
8 Investors Education Programme Virtual 25
9 Investors Education Programme Virtual 37
10 Investors Education Programme Virtual 19
11 Investors Education Programme Virtual 87
12 Investors Education Programme Virtual 13
13 Investors Education Programme Virtual 35
14 Investors Education Programme Virtual 46
15 Investors Education Programme Virtual 28
16 Investors Education Programme Virtual 39
17 Investors Education Programme Virtual 10
18 Investors Education Programme Virtual 11
19 Investors Education Programme Virtual 6
20 Investors Education Programme Indore 35
21 Investors Education Programme Bhopal 23
22 Investors Education Programme Ratlam 25

e. Steps taken / to be undertaken to improve hedging effectiveness of the contracts as well as to improve
the performance of illiquid contracts.
 Creating awareness about hedging and targeting the major Soybean processors
 Awareness Programme in major trading centres as well as remote location
 One to one meeting with market participants and hedgers

ANNEXURE I
Hedging Efficiency Methodology
Regression analysis is carried out between near month futures returns and NCDEX polled spot prices
returns of the FY2021-22.
The R-Square value of the Regression analysis represents the “Hedging Efficiency”.
Note: -
Date for which spot prices were not available is not used for analysis.
Weekly returns are used for performing Regression Analysis.
The method used to calculate Hedging Efficiency does not consider liquidity risk because of this reason
illiquid commodities can have high hedging efficiency.

References:
Ghosh, Ph. D, Nilanjan & Dey, Debojyoti & Moulvi, Nazir & Jain, Niteen & Sinha, Neha & Rachuri, Sarika.
(2013). Hedging Efficiency—Measures and Empirical Study.