Coriander market in Kota protests futures launch

Coriander market in Kota, Rajasthan, remained shut on Monday protesting the launch of futures trade in the spice on the Multi-Commodity Exchange (MCX).

The local traders fear futures trading is likely to increase speculation and prices of coriander.

Kota is the biggest market for coriander in the country.

MCX on Monday launched September, October, and November contracts in coriander seeds, deliverable at Kota or Ramganj in the state.

“Futures trade will increase speculation and adversely affect small traders in local markets,” said Mahavir Gupta, proprietor of a local broking firm.

Small traders will be tempted to trade in MCX contracts by paying a margin of just Rs 50,000 to buy 10 tonne seeds, which would otherwise cost Rs 9,00,000, Gupta said. This will increase speculation and any adverse price movement will end up in huge losses for these traders, he said.

At 3 pm on Monday, MCX contracts traded over 3,500 tonnes of coriander seed worth Rs 30 crore. September contract was at Rs 9,737 per 100 kg, up over 2 per cent from the base price of Rs 9,500 set by the exchange.