The uncertainty about the futures trading ended after the Commission on the Futures Market (FMC) granted licenses to the Indian Spice and Spices Trade Association (IPSTA) to conduct the futures trading. within six months of the July term.
In addition, at the initiative of the Spices Council Chairman, the FMC President held a meeting in Mumbai with IPSTA directors, in the presence of the Spices Council Chairman. An agreement at the meeting that the current price fluctuation of Rs 500 will be increased to Rs 1,000, while at NCDEX the current level of 4% will be reduced to 2.5%, source IPSTA. talk to Business Line.
The futures trading will continue for 6 months from the July term expected to start from Monday at IPSTA and will hold an introduction.
Every year, at this time, farmers and traders in the local market often liquidate part of their holdings to cover the cost of their children's admission. Therefore, creating a selling pressure that supports the price reduction. In addition, there is a suspension of this commodity business in the state of Maharashtra.
Last week witnessed a sharp decline in both forward and spot prices.
Spot prices for the week fell by Rs 890 to close at Rs 33,600 a quintal (US $ 6,122 / ton) for pint and 35,100 Rs / quintal (US $ 6,395 / ton) for MG 1 selected.
On NCDEX, May contract dropped Rs 890 to close at Rs 35,500 / quintal (equivalent to USD 6,468 / ton). (1 USD = 54.88 Lakhs)
Total turnover decreased by 506 tons to 197 tons. Total open interest dropped by 148 tonnes to close at 60 tonnes on Saturday. During the week, 17 tons of pepper were allocated for May delivery through the futures trading process.
Indian parity in the international market has dropped to US $ 6,500 – US $ 6,600 per tonne and has gradually become at par with other countries' pepper prices. Therefore, it is expected that there will be some new demand for Malabar next week.
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