The Hindu Business Line : Potato futures bear the brunt of margin hike

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Mumbai Feb. 14 The decision of the Forward Markets Commission (FMC) to uniformly hike margins to 20 per cent on the buy side (earlier it was 16 per cent and 15 per cent depending on the variety) on potato futures pulled down prices on MCX to the lower circuit of 6 per cent on Wednesday. Potato Agra variety fell by Rs 35 to Rs 550 per quintal, while the Tarkeshwar variety dropped 6 per cent to Rs 462 per quintal. Mentha oil futures fell 2.93 per cent to Rs 576 per kg. "Traders are hoarding stocks in anticipation of better prices as a clear picture on production will emerge in the next 3-4 weeks," said an investor on NCDEX.

Chilli loses sting

Chilli futures continued to lose ground on increased arrivals. Futures on NCDEX fell 2.07 per cent to Rs 3,835 a quintal. Guarseed futures were down 2.58 per cent to Rs 1,814 as there was no demand from guargum producers. "Wholesalers are holding up their stocks, expecting export inquiries to pick up in April. Removal of VAT on guarseed is also adding to the bearish sentiment," said a dealer.

Cardamom futures on NCDEX were marked down 2.5 per cent to Rs 430 per kg. Soyabean and kapas futures were marginally up 0.98 per cent and 0.21 per cent to Rs 1,423 per quintal and Rs 425 per 20 kg.

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