NCDEX hikes chana futures margin to curb speculation
To curb speculation in pulses futures, agri-commodity bourse NCDEX on Thursday hiked the total deposit money or margin to 45 per cent on chana (gram) buyers and 10 per cent on sellers, effective from Friday. The margin is a minimum percentage of the order value that traders are required to deposit with the exchange to trade in the commodity futures. Currently, there is 20 per cent margin on chana buyers and 5 per cent on sellers.
“A special margin of 25 per cent (in cash) on the Long side (buyers) and 5 per cent (in cash) on short side (sellers) has been imposed on all running contracts and yet to be launched contracts in chana with effect from April 22,” NCDEX said in a statement. With this hike, total margin will be 45 per cent on chana buyers and 10 per cent on sellers.
This is the second time this month that the margin amount has been increased. As per exchange data, chana futures prices for the July contract have risen by almost 15 per cent to Rs 5,539 per quintal in the last 20 days due to tight supply concerns. Gram production is estimated to be 8.09 million tonnes in 2015-16 crop year (July-June), slightly better than 7.17 million tonnes in the previous year, but much below the record 9.53 million tonnes in 2013-14. The carry over stocks of gram are exhausted now, putting pressure on prices.