The Forward Markets Commission (FMC) has restricted futures trading in potato contracts for July, August and September series. This step has been taken in order to check prices by disallowing fresh positions and hiking deposit amount on buyers. The commodity markets regulator has taken this decision in the backdrop of rising prices of potato and other essential commodities, which could be aggravated by the likelihood of a sub-normal monsoon.
Trading of potato is currently active only on the commodity bourse MCX, while it is negligible on NCDEX. MCX, following FMC’s directive, has disallowed fresh positions in July, August and September contracts of potato with effect from June 18. To restrict buyers 25% special margin (cash) shall be imposed on long (buy) side for all contracts of potato. MCX has hiked the margin money from 5% to 30% of the value of the commodity with effect from June 23.
In order to check rising prices of essential commodities, the government had announced a slew of measures on June 17. It slapped a minimum export price (MEP) of $300 per tonne on onion and will soon fix MEP for potato to curb exports.