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Commodity exchanges step up surveillance in farm commodities

02 Apr 2012 Evaluate

All the major commodity exchanges, NCDEX, MCX and NMCE, on the directives of commodity markets regulator FMC have stepped up surveillance to contain excessive price volatility and speculation in at least 6-7 farm commodities. There has been sharp rise in prices of some crops grown in the summer season and speculative buying was rife in anticipation of tight supply.

The stock exchanges are asking for higher margin money, only to control the fluctuation in prices of some agricultural commodities. NCDEX had earlier raised the deposit money on buyers of potato, chana and mustard seeds, while the MCX hiked it on cardamom buyers and NMCE had raised the margin money on mustard seed traders.

While, in latest development, NCDEX and MCX have asked the traders to deposit about 10 percent higher than the existing margin money from April 3 onwards to buy soyabean and pepper.

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