The Hindu Business Line : Plan to limit edible oil stock pulls down futures prices

NEW DELHI: Oilseeds prices in the futures market began to fall sharply on reports that states such as Delhi, Uttar Pradesh and Maharashtra would enforce storage limit on edible oils and oilseeds.

Mustard seed and soybean prices at NCDEX counter opened on a negative note following the news of stock limit on edible oils and food grains. Besides the domestic development, sluggish global market also affected Indian futures prices, an analyst at Hyder abad-based Karvy Comtrade said.

Mr Rajesh Aggarwal of Soybean Processors Association of India (SOPA) expressed similar sentiments and said, "Prices in the futures market have come down slightly today due to stock limit announced by some states".

Also, the onset of monsoon in Kerala brought cooling effect on prices that are ruling at high level, he added. In a bid to curb spiraling prices and check stocking of essential commodities, the state governments are planning to put restrictions on the s tocks of edible oil, oilseeds and food grains.

A notification regarding the stock control is likely to be issued in the coming days, which would have numerous steps to stop stocking of commodities. At 1300 hours, prices of May delivery of mustard seed fell by 1.45 per cent at Rs 576 per 20 kg, while July contract was down by 1.35 per cent at Rs 598.60 per 20 kg.

Meanwhile, soyabean prices of May contract slipped marginally by 0.54 per cent at Rs 2,322 per quintal, June and July contract came down by almost 0.88 per cent at Rs 2,311 per quintal and Rs 2,307 per quintal respectively.

However, soyabean prices in the physical market were not affected and were ruling firm at Rs 2,300 per quintal, market experts said, adding that today's fall in futures prices is temporary and prices would move up in the next two days. - PTI

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