The Hindu Business Line : FMC urged to remove quantity curbs on pepper

Kochi, Sept.5 The Cochin Hill Produce Merchants’ Association (CHPMA) on Wednesday urged the Forward Markets Commission (FMC) to remove the quantity restriction on nearby month position as it had negatively affected the pepper trade.

Attributing the current predicament in the pepper exports to the quantity restriction in the nearby month contract, Mr N A John, President, CHPMA said, it had become a major hurdle for better performance. The rate of the near month contract is far below the spot price, but the curb is restricting the exporters from taking advantage of the lower prices. He said black pepper exports from the country could be in a better position because of the tight supply position in the world market apart from the prevailing low prices for the Indian pepper.

He said that in spite of repeated requests from various forums the FMC was still going ahead with the 170-tonne limit.

“The limit has been fixed in order to curb excessive speculations and high volatility of prices, but there is no use. This is only helping the manipulators and gamblers. This affects the farmers, the hedgers and exporters,” he said.

He demanded that the compulsory delivery system should end and one should not be allowed to escape by penalty alone. Therefore, the regulator should see that the penalty clause is removed, since pepper is an export oriented commodity, he added.

More Stories on : Spices & Condiments | Industry Associations

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Hedging to manage price risks

HC quashes DGFT order

Pak mills get stay against Indian sugar imports

Insurance cover for tea growers

Tapioca growers seek transparency in sample testing

Spot rubber gains on global trend

Talks soon on bonus for Bengal tea garden staff

‘Dam Dim Tea Estate management forced to declare lock-out’

Higher volume on offer at Coonoor tea auctions

Bears control metals complex

Tobacco growers in Karnataka eye higher yields

Firm global market buoys pepper futures

FMC urged to remove quantity curbs on pepper

Under pressure

POABS Organic unhappy with Govt taking over estate

Workshop on soil health

Retailers continue to obtain produce from APMC markets