Iran Mercantile Exchange Enters the Pistachio Market With a New Commodity Deposit Certificate

Iran Mercantile Exchange has begun operating its first accredited pistachio warehouse after naming pistachio as the underlying asset for a new commodity deposit certificate market. According to Bourse News, citing Mahboubeh Eskandari, head of the exchange's warehouse admission office, the warehouse belongs to Mani Asia Company in Maragheh, East Azerbaijan province, with a current capacity of 100 tons that can be expanded later.

The underlying asset is Fandoghi pistachio with a 30 or 32 count per ounce and a kernel yield of 49.5 to 50.5 percent. The warehouse operator charges an evaluation fee of 7 million tomans for each incoming batch of up to 25 tons, and the minimum batch size for deposit or withdrawal is 2 tons. Eskandari said the instrument lets producers and traders pledge their certificates, which represent ownership of the physical pistachios, to banks for financing, so growers are no longer forced to sell at low prices during the harvest season.