NCDEX hikes margin money on wheat contracts by 10%

The National Commodity and Derivatives Exchange (NCDEX) has decided to impose 10% additional margin on wheat contracts with effect from Aug 25, 2012. Pursuant to which, the margin or the deposit money has increased from 13% to 23% for wheat traders. NCDEX has hiked the deposit money to check the traders and to control the rising wheat prices.

The margin is a minimum percentage of money that traders are required to deposit with the exchange to trade in the commodity futures. With the increase in deposit money, the wheat prices are now off their high levels.

Wheat future prices were shooting up due to the record wheat production last year. In the previous year, the country harvested a record wheat production of 93.90 million tonnes. Due to abundant crop, the government has also allowed exports.