Quantcast
Other Stories

With the news of India's Forward Market Commission (FMC) suspending all the guar contracts, the spot prices of guar seed and guar gum crashed drastically in the spot markets.

28 Mar 2012

MUMBAI (Commodity Online): With the news of India's Forward Market Commission (FMC) suspending all the guar contracts, the spot prices of guar seed and guar gum crashed drastically in the spot markets.

Guar seed prices dropped Rs 2,000 per 100 kg to Rs 25,500 while that of guar gum declined to Rs 83,000 from Rs 88,000 per 100 kgs.

Some of the measures to curb volatility and speculation in guar seed and guar gum futures by India's Forward Market Commission (FMC) failed to achieve the objective and therefore trading has been suspend in guar futures with effect from Tuesday.

Earlier the commission had suspended the the April, May, June, July, August and September contracts and the traders was only allowed to round off the current trade.

The commodity price has gone up 10 fold during the past few months.

According to traders, supply shortage amid of higher export demand has been the reason for the commodity prices to move up.

India is the largest producer and exporter of guar seed in the world.

Meanwhile, K.V Thomas, Minister for Consumer Affairs, Food and Public Distribution has asked the FMC to reinvestigate the issues regarding the price hike in the commodity.


YOUR RESPONSE
Click on the image to reload it
Click to reload image
COMMENTS (2)
Sara
05 Apr 2012
Our lab has developed 5 one-to-one guar gum replacements, used in industries such as hydroseeding, baking, dairy, and oil drilling. Contact us for more information (onsetworldwide)
Name Email
Post
Reply
Gautam Bothra
28 Mar 2012
Too little too late to ban future trading in Gaur Gum, damage is already done to market of Gaur Gum by not taking any action swiftly by FMC. On 1st DEC 2011 Gaur Gaum was quoted at 16500 per qtl and by 20th March 2012 it reached 98000 per qtl, Prices increased by 600 % in just 4 months, and FMC pertained that there was not wrong in price movement,where was the FMC in this period? sleeping? Sleeping with whom needs to be investigated. Same thing is happing in Mentha Oil and Cardamom, and I can see THE FMC still sleeping. Menta Oil was 1323 on 1st Dec 2011 and already touched high of 2564 in just 4 months isnít great ? Cardamom was 601 on 1st Dec 2011 and already touched high of 1312 in just 4 months isnít great ? And the Agency still sleeping or watching to get prices out of roof ?
Name Email
Post
Reply

@2013 COMMODITYONLINE ALL RIGHTS RESERVED