FMC allows Ncdex to ease norms for urad

Forward Markets Commission, the commodity market regulator, has allowed National Commodities and Derivatives Exchange (Ncdex) to relax quality norms for urad futures to ensure better delivery of the contracts.

The relaxation on urad contract was meant to align the running futures contracts with the available quality in physical markets, Ncdex sources said.

"There has been no change in basic quality for the urad future contracts. However, some parameters have been relaxed to allow smooth delivery of available quality in the physical market," they added.

FMC's approval was given to Ncdex after the exchange had sought permission to allow delivery of a slightly inferior quality of urad variety available in the physical market.

In fact, the urad crop that has started arriving in the market had got affected due to unprecedented rains in the major producing state of Maharashtra.

"We have approved the Ncdex proposal to allow inferior quality of urad at a discounted price," an FMC source said.

The market regulator cannot ignore the reality of physical market where the best quality urad variety are not available in abundance at present, he said.

"This proposal of Ncdex, where the highest trading of the pulse variety takes place, has been approved to ensure benefit of price discovery at a commodity exchange reaches to farmers down the line," he said.