In respect of ongoing contracts, no new position will be allowed to be taken. SEBI said in a release, only squaring up of positions will be allowed
Market watchdog Securities and Exchange Board of India (Sebi) on October 8 restrained commodity exchange NCDEX from launching fresh mustard seed contracts till further orders amid efforts to contain rising mustard oil prices.
The latest instructions for National Commodity and Derivatives Exchange Limited (NCDEX) will come into force with immediate effect.
In respect of ongoing contracts, no new position will be allowed to be taken. Sebi said in a release that only repayment of positions would be allowed.
“No new mustard seed contract will be started till further orders,” it added.
Edible oil industry body Solvent Extractors Association (SEA) Executive Director BV Mehta said SEBI has taken this decision to check further rise in mustard oil prices.
He said most of the mustard stocks have been crushed and as a result prices are under pressure.
The tight supply of mustard seeds has put pressure on the wholesale and retail prices of mustard oil.
According to 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.
According to industry data, against the total estimated mustard production of 85 lakh tonnes in the 2020-21 crop year (July-June), mills have crushed around 70 lakh tonnes and farmers have a stock of 14-15 lakh tonnes. is left.
Mustard is a rabi (winter) crop, and fresh arrivals are expected only in February. Presently, mustard sowing has not started in North India due to relatively high temperature.
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