Cartels will not be allowed to function in futures market: FMC

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Summary"Now the functioning of cartels has come under threat," says Ramesh Abhishek.

Commodity market regulator FMC today said that cartels will not be allowed to 'use or misuse' futures market.

"Now the functioning of cartels has come under threat. We will not allow them to function. Government does not want futures market to be used and misused by few cartels in the country. We are not going to spare anyone," Forward Markets Commission (FMC) Chairman Ramesh Abhishek said here referring to allegations of cartels manipulating the futures market.

Addressing a stakeholders meeting of rubber, pepper and cardamom here, he said the allegation was not new. But there is need to take effective steps to check it, he said.

The FMC is committed to making market more user friendly and useful to all stakeholders, especially farmers. "We want more farmers to participate and want the Kerala model in which farmers come together as cooperatives, be replicated in other states as well," he said.

Kerala is a successful role model where small farmers are participating in the platform of commodity exchanges, he said.

Pointing out that in the past one year, FMC in partnership with commodity exchanges had brought in many changes, including introduction of staggered delivery system, he said this had been widely welcomed by participants and reduced excess speculation.

Referring to the recent issue of about 34 tonnes of pepper being seized from warehouses in the state citing poor quality, NCDEX Managing Director R Ramaseshan said the exchange will not spare anyone.

"We are in the process of initiating action against suspected wrongdoers after giving them opportunity to explain their conduct. We do not come under the influence of anyone and will do everything to protect the integrity of the exchange," he said.

The Commissioner of Food Safety had visited the warehouses, following allegations that mineral oil was mixed with pepper. Following advisory from the government, it was decided that delivery of this quantity of pepper will not be allowed.

As of date, the government advisory that pepper should be delivered after testing still stands, he said.

The state government has been asked to take up the issue on a priority basis and if it passes the test, it can be permitted to be dispatched to the market, he said.

On the loss suffered to the seller, which is a consortium of farmers, he said this would have to be taken up with FMC.

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