Potato prices plunged 2.25% to Rs 1,265 per quintal in futures trade today as speculators offloaded their positions after MCX decided to raise the margin to check persistent rise in the commodity.
At the Multi Commodity Exchange, potato for delivery in August fell sharply by Rs 29.10, or 2.25%, to Rs 1,265 per quintal in a business turnover of 21 lots.
September potato lost Rs 14, or 1.03%, to Rs 1,342 per quintal in 21 lots.
Market analysts said traders indulged in offloading their positions after Commodity Exchanges MCX and NCDEX raised the deposit money on traders to check persistent rise, leading to the fall in potato futures prices.
Commodity bourses, MCX and NCDEX, have raised the deposit money up to 40% from tomorrow for traders keen to buy potato from the two exchanges' platform.
In separate circulars, MCX and NCDEX have announced raising the total deposit money (margin) to 40% (of the value of the commodity interested to trade) from the existing 25%.
The exchanges have also increased deposit money by 5% to 15% for traders keen to sell potato.