NEW DELHI (Commodity Online): The Forward Market Commision (FMC) has planned to issue showcause notice to traders in Rajasthan on suspecting price manipulation of guar gum and guar seed.
The notice will be served to the traders by this Friday.
The FMC and India's National Commodity and Derivative Exchange (NCDEX) has co-ordinating with each other to investigate the issue, reported Business Standard
The investigation was order on the basis of suspecting manupulation of prices of guar guum and Guar Seed as the price of the commodity had risen sharply to 150% since April.
The investagation team has been sent to examine the traders account books and they are expected to submit the report with in next two days.
Guar gum, which is a derivative of guar seed, is used in industrial application. India contributes almost 97% of the global demand through exports of 400,000 tonnes of guar gum.
On NCDEX, Guar Seed for May delivery traded up 1.57% to Rs 7895 and Guar gum for March traded up 0.82 to Rs 25700 on 4th January at 10:55 IST.
