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The Forward Markets Commission (FMC), the commodity derivatives market regulator, has suspended trading in potato contracts temporarily with immediate effect. Following that, potato contracts for delivery in August and September on the Multi Commodity Exchange (MCX) will no longer be available for trading.
All open positions in August and September contracts, however, will be settled at the last available daily settlement price of the respective contracts.
MCX had earlier urged FMC to allow suspension as these contracts were no longer serving the purpose of price discovery and hedging because of the lack of liquidity, broad based participation and adequate stock in the exchange accredited warehouses.
