Faced with high volatility in the last few weeks, farmers in Gujarat have urged the commodity derivatives market regulator the Forward Markets Commission (FMC) to ban futures trading in castor seed.
Farmers’ representative body Bhartiya Kisan Sangh (BKS), in a letter to the FMC on Tuesday, said that the regulator should ban futures trading in castor seed in case excessive speculative activities are witnessed in this counter on commodity exchanges.
Alleging FMC’s unilateral action, in terms of imposition of margins when prices move up, benefits multinational companies, BKS said, “Let the market factors of supply – demand, determine the fair prices of the castor as farmers would then be free from the clutches of the monopolistic local manufacturers.”
Average castorseed price jumped 17.83% in October 2014 to Rs 44,000 a tonne in Gujarat spot mandi as compared to Rs 37,553 a tonne in November last year. During the week to November 28, however, castor seed price declined 3.28% to Rs 44250 a tonne.
Castor seed’s share in overall turnover of NCDEX at Rs 66198 crore has shot up to 26.60% in October from 23.5% share in Rs 83,520 crore turnover recorded in September. The oilseed’s contribution, however, has fallen to 20.80% in the exchange turnover of Rs 49,008 crore up to November 24.