INDICES OF SUGAR AND SUNFLOWER OIL ENTERED THE COMMODITY MARKET
The methods for calculating two new commodity indicators – the sugar cost index in the Central Federal District and the sunflower oil export index – have been approved by an interdepartmental working group. The indices are calculated by National Commodity Exchange JSC on the basis of information on transactions that market participants are required to provide.
For market participants, the index is a benchmark that they can use to solve their business problems and launch price risk hedging tools. It can also be used to regulate commodity markets.
Currently, the sunflower oil index is already used in calculating export customs duty rates, and the sugar index is offered by the exchange as a basic asset for launching a settlement futures contract. The approved indices will be included in the national system of price indicators. In the future, the Bank of Russia and the authorities will evaluate the possibility of their use for regulatory purposes.