The Hindu Business Line : FMC raises open interest, price limits for 32 farm items

Mumbai, Feb. 13 Days after getting its autonomous status, commodity market regulator Forward Markets Commission has increased open interest position on 32 agriculture commodities besides raising the daily price limit for 34 agriculture commodities.

The move is likely to improve sagging volumes at NCDEX. “The trading and clearing members are hereby informed that, as per the directives received from the Forward Markets Commission open interest (OI) limits — both aggregate (commodity level for all contract months) limits and delivery (near) month limits — in respect of agricultural commodities are revised,” the exchange said in an announcement.

The commodities in which open interest has been increased include chana, masoor, yellow peas, maize, RM seed, soyabean, refined soya oil, mentha oil, sugar (Super and Medium), jeera, red chilli, pepper, raw jute, guar gum, guar seed, gur, barley, turmeric, rubber, potato, castor seed, groundnut shell, coffee robusta cherry, cotton (long and medium staples), groundnut oil, RM seed oil cake and RBD palmolein.

“The limits are to be followed on real-time basis on both aggregate (commodity level for all contract months) and delivery (near) month and would be effective from the further month contract,” the exchange said.

A member’s open interest limit at aggregate (all contracts) level will be either the absolute number as mentioned by the Exchange or 15 per cent of the total market open position in the commodity, whichever is higher. In case of near-month, a member’s open interest limits will be either indicated by the Exchange or 15 per cent of the total near-month open position in the commodity, whichever is higher.

Price limit

Daily price limits have been increased to 4 per cent for 33 agriculture commodities, except for rubber which saw a rise to 3 per cent. The agriculture commodities which have seen a relaxation in daily limits include barley, castor seed, chana, chilli, coffee robusta, cotton seed oil cake (Akola and Kadi), cotton medium staple, cotton very long staple, Indian cotton 28.5 mm, crude palm oil, ground nut in shell, ground nut oil, guar gum, guar seed, gur, jeera, kapas, maize, masoor, mentha oil, pepper, potato, RM seed, raw jute, rubber, sesame seed, shankar kapas, soya bean, soya oil, sugar (M200 and S150), turmeric and yellow peas.

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