FMC asks NMCE to check price manipulation

FMC, in response to a request made by the leading bourse MCX, has also decided to exempt registration of potato cold storages with the Warehousing Development and Regulatory Authority (WDRA) for the current season to ensure smooth supply and efficient price discovery on the exchange platform.

Highlighting the performance of commodity futures market, the regulator said the combined turnover of commodity bourses fell by 40 percent to Rs 95.13 lakh crore till February of this fiscal, from Rs 157.82 lakh crore in the year-ago.

There are 17 commodity exchanges in the country, of which MCX, NCDEX, NMCE, ICEX, ACE and UCX operate at national level. As per FMC data, turnover from bullion dropped by 44 percent to Rs 40.83 lakh crore during April-February period of this fiscal, from Rs 73.26 lakh crore in the year-ago.

Similarly, the business from energy items fell by 32 percent to Rs 23.39 lakh crore from Rs 34.41 lakh crore, while turnover from metals like copper declined by 45 percent to Rs 16.46 lakh crore from Rs 29.95 lakh crore in review period.

The turnover from agri-commodities also declined  by over Rs 14.44 lakh crore till February of this fiscal, as against Rs 20.20 lakh crore in the same period last year.

Experts attributed fall in turnover to sluggish trade participation especially after imposition of the commodity transaction tax and the Rs 5,500 crore payment crisis at NSEL, a sister concern of MCX.