MCX slashes margin money for turmeric futures trade to 10%

The Multi Commodity Exchange today lowered the amount of margin money -- which is the deposit that traders are required to maintain with the bourse -- for turmeric futures trade to 10 per cent.

Earlier, the MCX had made it mandatory for traders to maintain a deposit worth at least 30 per cent of the value of futures contracts sought to be traded.

The 20 per cent reduction in the margin applicable in turmeric contracts will come into effect from today, according to a circular issued by the exchange.

Experts said the deposit money for turmeric traders was reduced in the wake of sharp fall in turmeric futures prices.

Turmeric futures prices have declined from a high of Rs 15,000 per quintal to Rs 11,800 per quintal in a span of three months.

Earlier this month, agri-commodity exchange NCDEX also reduced the margin for turmeric contracts to curb a further fall in prices.