Jute futures to be settled at Dec 15 level

Forward Markets Commission (FMC) "" the commodities market regulator - has decided that in case the maturity date of a running raw jute contract falls during the suspension period of the trade, the contract should be deemed settled at the settlement price on December 15, 2005.

FMC has already communicated this decision to National Commodity and Derivatives Exchange of India (Ncdex) and National Multi-Commodity Exchange (NMCE).

Futures trading in all ongoing raw jute contracts was suspended effective from December 15, 2005, following the announcement of the Jute Commission on fixing of a reasonable price for different varieties of raw jute.

The December jute contracts on Ncdex were set to expire today, but they were suspended on Thursday last on the Mumbai-based Ncdex and the Ahmedabad-based NMCE following the Jute Commissioner's recent order of fixing prices for various grades of raw jute, under the Jute Textiles Control Order, 2000, in line with the industry's long-term demand.

Narendra Gupta, chief business officer, Ncdex, was not available for comments.