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India's NCDEX imposes special margin on soybean, pepper

MUMBAI: India's National Commodity and Derivatives Exchange (NCDEX) has imposed a 10 percent special margin on soybean and pepper contracts from April 3 to control excessive price volatility, after the regulator banned guar trade earlier this week.

The NCDEX will convert 5 percent additional margin on pepper into cash margin, the exchange said in a statement. Soybeans has gained more than 19.25 percent since the start of the year and pepper has gained 17.85 percent.

The commodity market regulator had banned trading in guar gum and seed contracts after prices rose 10-fold last year.

Commodity futures trade, which started about nine years ago in India, has witnessed bans and re-listings of various farm products such as wheat, chick peas and sugar after what was seen as excessive speculation. Other agri-commodities like rice and other pulses are yet to get re-listed.

Copyright Reuters, 2012