NEW DELHI (Commodity Online): India based National Commodity and Derivatives Exchange (NCDEX) has revised the special margin, imposed on all turmeric contracts trading in order to avoid volatility.

In a statement, NCDEX Chief Business Officer, Vijay Kumar said that it has reduced special margin on turmeric futures contracts to 10% on buyers’ side with effective from October 6.

NCDEX had increased the special margin to 20% on buyers’ part in the all futures trading in turmeric contracts.

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At present, traders interested to take a position in any of the turmeric futures contracts, will have to deposit 9.52% of the value of underlying commodity as initial exposure margin and 10% as special margin for taking the buy position in the contract. The margin amount is collected from the trader to save the credit risk of the counter party.

Turmeric futures on National Commodity and Derivatives Exchange touched 4% upper circuit Wednesday on tight supply amid good festive demand, traders and analysts said.

Most-active November turmeric contract on NCDEX was at Rs 8,513 per 100 kilogram, up 4% from previous close.