 "FMC levies 15% special cash margins on potato to cool down prices")
The Forward Markets Commission, the commodity derivatives markets regulator, has levied 15% of additional cash special margins on both sides (long and short or buy and sell) of running potato contracts.
With this levy the overall margins went up to 35% from the existing 20% for buy side contracts while the sell side contracts would attract only 15%.
To become effective from March 21, the proposed margin is purely meant to cool down potato prices in futures market which were hitting upper circuit for the last few days. In spot trade, potato prices remained rangebound.
Currently, Agra delivery potato contracts are running on the Multi Commodity Exchange (MCX).
With this levy the overall margins went up to 35% from the existing 20% for buy side contracts while the sell side contracts would attract only 15%.
To become effective from March 21, the proposed margin is purely meant to cool down potato prices in futures market which were hitting upper circuit for the last few days. In spot trade, potato prices remained rangebound.
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Further, the FMC suspended fresh (buy/sell) position in potato contracts during the last seven working days prior to the expiry date of the running contracts.
Currently, Agra delivery potato contracts are running on the Multi Commodity Exchange (MCX).