Open position issues will be solved soon: FMC

Voices of concern over cumin seed and pepper delivery and quality standards were aired at a meeting of traders and hedgers called by the Forward Markets Commission.

In reply to the stakeholders' queries, FMC chairman B C Khatua said the regulatory body is expected to sort out the issues related to open position limits, the quality and delivery of cumin seed (jeera) and pepper during the next few days.

Recently, cumin seed and pepper traders had complained about sub-standard quality and prolonged delivery delays. But, according to the participants at the meeting, nothing tangible has happened. Chilli and guar also invited quality and delivery complaints.

On poor quality in deliveries and inadequate warehousing facilities, the FMC chief said the commission was planning to meet warehouse representatives soon. Participants also expressed the need for contracts of longer duration in some commodities.

The other issues which a majority of participants raised related

to lower position limits. The FMC had in an order to curb excessive speculation reduced the position limits for many commodities.

According to participants, this has resulted in low levels of liquidity and lack of interest among traders. The FMC promised to examine the issue.

In his opening remarks, Khatua said the FMC would like to have a balanced market in which all stakeholders play their economic role for the efficient functioning of the market.

For this, the regulator was committed to look into all issues confronting the interests of hedgers.

Khatua underlined the importance of hedgers and their role in price discovery for future months. The efficacy of the Futures markets would be judged by the level of participation of hedgers, be it producers or users like manufacturers or exporters, he added.

The meeting, the first of its kind, was convened to gather the views of all stakeholders who play a pivotal role in the smooth functioning of the commodity futures.