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Sebi bars NCDEX from launching new mustard seed contracts

Markets watchdog Sebi on Friday barred commodity exchange NCDEX from launching new mustard seed contracts till further orders amid efforts to curb rising prices of mustard oil

SEBI | NCDEX | Mustard Seed

Press Trust of India  |  New Delhi 

File photo: PTI
File photo: PTI

watchdog on Friday barred commodity exchange from launching new contracts till further orders amid efforts to curb rising prices of mustard oil.

The latest direction for the National Commodity & Derivatives Exchange Ltd (NCDEX) will come into immediate effect.

In respect of running contracts, no new position will be allowed to be taken. Only squaring up of position will be allowed, said in a release.

"No new contract shall be launched till further orders," it said.

Edible oil industry body Solvent Extractors Association's (SEA) Executive Director B V Mehta said has taken this decision to check further rise in prices of mustard oils.

Much of the stock has been crushed and as a result there is pressure on prices, he added.

Tight supply of mustard seeds has put pressure on wholesale and retail prices of mustard oil.

As per the government data, the average retail price of mustard oil (packaged) increased to Rs 183.50 per kg on October 7 this year from Rs 128.50 per kg on October 8, 2020.

Against the total estimated mustard seed production of 85 lakh tonnes in the 2020-21 crop year (July-June), millers have crushed about 70 lakh tonnes and farmers are left with a stock of 14-15 lakh tonnes, according to industry data.

Mustard seed is a rabi (winter) crop, and the fresh arrival is expected only in February. At present, sowing of mustard seed has not yet commenced in North India due to relatively high temperature.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Sat, October 09 2021. 02:48 IST