FMC may tie-up with US regulator

The Forward Markets Commission may sign a memorandum of understanding with the US Commodity Futures Trading Commission for information sharing and training programmes, sources said.

"We are in dialogue with various international regulators, including CFTC, and will a take decision after examining the terms and conditions with them," FMC Director Anupam Mishra said.

The CFTC was formed in 1974 to regulate commodity futures and options markets in the US. "The alliance would be in the areas of information sharing and training needs of the exchanges' participants," he said.

Indian commodity markets are likely to see a jump in trade volumes once the government clears 'options' trading and allows banks and foreign institutional investors to enter the market. India has 21 regional exchanges and three national multi-commodity exchanges.

NCDEX appoints additional director

The Board of Directors of the National Commodity & Derivatives Exchange (NCDEX) at its meeting held on Saturday, has appointed Michael Gorham as additional director of the exchange.

NCDEX has a 11-member board, each an authority in their respective spheres of expertise.

Rajasthan cuts VAT on pulses to 1% from 4%

Rajasthan has reduced value added tax on all pulses to 1 per cent from the current 4 per cent, an official of the state's finance department said on Tuesday. The lower VAT is effective up to March 31. Competition from millers in neighbouring states where there was no VAT on pulses had hit Rajasthan's mills, and that prompted the cut, the official said.

"Of 1,200 dal mills in the state, only 120 are currently operational, while the rest had shut or were on the verge of closing," said Jethmal Kasat, convenor of Dal Millers' Association.

In the past one month, most of the state's pulses produce was sent for processing to states such as Madhya Pradesh, Delhi, Maharashtra and Gujarat where VAT is zero.

India's crude oil basket dips to $66.80

India's crude oil basket on Monday eased further to $66.80 a barrel from $67.68 a barrel on Friday, in line with the fall in global crude oil prices, data from the petroleum ministry said.

The basket is now 6 per cent lower than its record high of $71.13 a barrel on May 2. June delivery contract on the New York Mercantile Exchange on Monday closed at $69.77 a barrel, down 42 cents for the session.

India's crude oil basket has averaged $69.11 in May so far compared with April's average of $67.15 and $60.01 in March. The basket comprises Oman-Dubai sour grade of crude and Brent dated sweet crude in a 58:42 ratio. Brent crude closed at $68.39 a barrel, while the Dubai and Oman benchmarks were at $64.93 and $66.35 respectively.

MCX chilli May contract expiry advanced

The Multi Commodity Exchange has advanced expiry of the May chilli contract to Friday from Monday as physical trade in Guntur will be suspended next week for three weeks, it said.

The May contract's final settlement price will be based on the spot prices on its final three days. The three-week long halt to trading up to June 3 in Guntur, chilli's largest market, was because temperatures rise to around 45 degrees Celsius from mid-May to early-June and "it becomes difficult for farmers and labourers to work," said Killari Venkata Rosaiah, president of the Guntur Chilli Merchant's Association.

"For the past 7-8 years, the halt in chilli trade has been a normal practice," said Vinaykanth of Guntur-based Vinay Spices.