The Forward Markets Commission (FMC) may decide on lifting the ban on guar futures trading some time in August.
“We are waiting for the sowing of guar seed to be completed and then take a call on the re-launch of futures,” said Mr Ramesh Abhishek, Chairman of FMC. He was speaking to reporters on sidelines of a seminar on commodity markets.
The futures trade in guar was banned in March after a ten-fold surge in prices on speculation. The guar seed prices had touched a high of over Rs 30,000 per quintal early this year on strong overseas demand for guargum, an extract of guar seeds.
Guargum is used a thickening agent and additive in food products such as instant soups, ice creams and processed meat products. Guargum has also been increasingly used for applications in paper, textiles, ore floatation, explosives and fracturing of oil and natural gas formations. It is expected that the strong verseas demand for guargum could lead farmers to plant more guarseed in states such as Rajasthan, Haryana and Punjab this year.
Keywords: Forward Markets Commission (FMC), ban, guar futures, Ramesh Abhishek, commodity markets, surge in prices, guarseed, Rajasthan, Haryana, Punjab, guargum, paper, textiles, ore floatation, explosives and fracturing of oil, natural gas formations,