MUMBAI: The sharp volatility in castor seed prices in the run-up to peak arrivals has given industry officials the jitters of the commodity possibly going the guar way, which was banned by the commodity futures market regulator for a year through May 2013 because of excessivespeculation and price volatility.
The price of castor seed on the futures market, which is a reflection of spot prices, has risen from around Rs 3,400 a quintal (100 kg) in the second week of October to Rs 5,054 in the second week of December and has corrected to around Rs 4,400-odd since then. This when the peak arrivals of the crops begin between January and April.
The gyration in price raised alarm bells among industry players - Jayant Agro, Adani Wilmar,Gokul Group - and the Solvent Extractors' Association (SEA) that represents them. SEA wrote to commodity futures regulator a fortnight ago warning that initial expectations of a normal castor crop - 12-15 lakh tonnes - did not justify the kind of volatility witnessed in futures prices recently. BV Mehta, ED, SEA, confirmed that industry concerns were conveyed to the FMC. However, FMC chairman Ramesh Abhishek was not available for comments.
The price of castor seed on the futures market, which is a reflection of spot prices, has risen from around Rs 3,400 a quintal (100 kg) in the second week of October to Rs 5,054 in the second week of December and has corrected to around Rs 4,400-odd since then. This when the peak arrivals of the crops begin between January and April.
The gyration in price raised alarm bells among industry players - Jayant Agro, Adani Wilmar,Gokul Group - and the Solvent Extractors' Association (SEA) that represents them. SEA wrote to commodity futures regulator a fortnight ago warning that initial expectations of a normal castor crop - 12-15 lakh tonnes - did not justify the kind of volatility witnessed in futures prices recently. BV Mehta, ED, SEA, confirmed that industry concerns were conveyed to the FMC. However, FMC chairman Ramesh Abhishek was not available for comments.
No comments:
Post a Comment