The Hindu Business Line : `NMCE not keen '

THE National Multi-commodity Exchange (NMCE) appears to be reluctant to accede to the Spices Board's request to suspend temporarily the futures trading in cardamom on the ground that the prices quoted in the futures were far below the auction prices.

The NMCE is of the view that futures trading fall under the jurisdiction of the Forward Markets Commission (FMC) and hence, it might not be able to suspend the trading in the absence of a directive from it. Besides, like in the auctions, physical delivery does not take place in futures trading, exchange sources said.

The prices quoted in futures trading are far below the auction prices. When the average auction price stood at around Rs 275, the prices quoted in the futures trading have been around Rs 200, Mr S. Kannan, Director - Marketing, Spices Board, told Business Line.

"It has been making serious impact on the auction prices pushing it down and consequently hitting the farmers hard," he said.

He said the board, which had granted licence for conducting auctions, was, however, expecting a report from the exchange on its suggestion.

The board had taken up the issue with the NMCE following a request from the Cardamom Growers' Association.

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