FMC permits NCDEX to launch coriander futures for 2015

Commodity markets regulator FMC has allowed NCDEX to launch coriander futures contracts for 2015 calendar year.
"The Commission in pursuance of Bye-law 4.1 of Chapter 4 of the Bye-law of the Exchange allows the Exchange to launch January 2015 expiry and further contracts in coriander in the interest of the market for providing the contract for price discovery and price risk management," said a late evening update on the website of the Forward Markets Commission (FMC).
It has also approved inclusion of Gondal in Gujarat as an additional delivery centre in the coriander contract from January 2015 onwards.
FMC in its fortnightly report released earlier in the day said it had on September 2, 2014 decided that "NCDEX shall not launch any new/further contracts in Coriander/Dhaniya till the expiry of contracts as per calendar without FMC's prior approval. However, trading in existing contracts would continue."

This decision was taken because the Commission observed that as against the total open interest of 62320 MT in coriander futures contract on NCDEX as on 26th August, 2014, the total deposits in the Exchange accredited warehouses during the last six months was only 620 MT. Further there had been no deliveries by Exchange in the current year beginning from April 2014 to August 2014, the regulator said.
"In the absence of threat of delivery in coriander contract, the quality of fair price discovery in such contracts is doubtful. It was further observed that quoted price at spot market were far away from price polled/quoted at futures market," it added.