The Indian Pepper and Spices Trade Association (Ipsta) has proposed increasing liquidity and flexibility in trading, besides various other measures to attract more domestic participation in the International Commodity Exchange (ICE) for pepper, Ipsta president Vidyasagar has said.
We have suggested relative measures for increasing liquidity and flexibility in contracts to the government for increased domestic participation in ICE, he told PTI.
ICE, which began futures trading in pepper on Nov 17, has been hit by low volume turnover and Ipsta felt that certain measures would have to be taken on war-footing to improve the trade turnover.
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Initially, the volume has been lower. We have to get more players in the ICE, Vidyasagar said.
At present, contracts could be reached after getting orders from the forward markets commission (FMC) and any change in contracts had been to referred to FMC.
We have sought some flexibility in such rules to improve the turnover, he said.
Besides, liquidity had been hit as banks still extend credit based on last year prices of pepper, which was one third of current prices.
IPSTA has proposed reducing the clearing charges for transactions, which is now 0.01 per cent of the traded value of a contract, Vidyasagar said.
Other measures suggested include increased funds for holding roadshows, seminars and workshops in countries where pepper was produced, he further added.
We also have plans to hold seminars and roadshows in Europe and the United States, which import a large quantity of Indian pepper. But the government has to clear our proposals, the IPSTA president said.
A commerce ministry official in New Delhi, when contacted, said no decision had yet been taken on the extra funds sought by IPSTA or holding the roadshows and seminars. (PTI)
The Indian Pepper and Spices Trade Association (Ipsta) has suggested various methods to attract more domestic participation in the International Commodity Exchange (ICE) for pepper. Among the important proposals that the Ipsta has made are increasing liquidity and flexibility in contracts to the government, informs Vidyasagar, president, Ipsta.