NCDEX to add basmati paddy in the Grain Basket

Current context: The National Commodity and Derivatives Exchange has decided to launch futures trading in Basmati Paddy–Pusa 1121

Reason to include Basmati:

• To provide a fair price platform to market participants
• Due to High volatile nature of basmati paddy
• India contributes about 23% (116 million tonnes) of global rice production(500 million tonnes)
• In the case of basmati rice production, India commands over 70% ( about 5.5 million tonnes) of global production (9 million tonnes) becoming the world’s top exporter of basmati rice
• Basmati accounts for about 5% of the total production of paddy in India
• The addition of paddy Basmati from futures to the grain products is aimed at offering wholesome risk management to the market

About NCDEX:

• NCDEX: National Commodity and Derivatives Exchange Limited
• It provides a commodity exchange platform for market participants in India to trade in commodity derivatives
• It was incorporated on 23rd April 2003 as a public limited company under the Companies Act, 1956
• CEO: Vijay Kumar Venkataraman
• Headquarter: Mumbai, India

Question: 

Q.1 Which commodity has been recently included by the National Commodity and Derivatives Exchange in its grain products basket?
a. Wheat
b. Basmati Rice
c. Millets
d. Jowar

Q.2 What is India’s position in terms of export of Basmati rice?
a. 2nd largest exporter
b. Top leading exporter
c. 4th largest exporter
d. 5th largest exporter