The Hindu Business Line : NCDEX urged to hike jeera open interest position

Mumbai June 20 The Jeera Product Committee (JPC) of NCDEX has urged the exchange to reduce margin requirements and increase open interest position to encourage participation of wholesalers and small traders.

NCDEX officials, who met the JPC, warehouse service-providers and assayers after the recent controversy over jeera delivery in Unjha, Gujarat, assured it that they would take necessary action after getting the approval of the Forward Markets Commission.

Five Unjha-based JPC members, assayers and exchange officials have decided to meet again in Unjha on June 23 to analyse the assaying methodology.

"The physical traders, who hedge their price risk on the exchange platform find it difficult to pay for procuring the commodity and provide for the margin. Also restrictive position limits result in lower deliveries thereby leaving the market exposed to price volatility," the JPC members said.

Mr Praveen Bhai Patel, President of the Unjha Futures Trading Association, who is also an NCDEX JPC member, said the exchange officials should take up issue of margins and position limits with the regulator since it would affect futures trading and true price discovery.

Mr Shrikant Subbarayan Chief Business Officer, NCDEX said: "The exchange will facilitate a meeting of the assayers, warehouse providers and the trading community to address all issues relating to smooth running of the contract."

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