Last Updated : 28 March 2012 at 17:00 IST
Guar seed, gum prices tumble on suspension of futures
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.
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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.
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