Dollar trade in pepper delayed

Ajayan in Kochi

The pepper market which is facing the brunt of the sales tax and the turnover tax (TOT) has yet to start with it dollar-denominated contract for futures trade. Though the trade was to have begun on Monday, according to India Pepper and Spices Trade Association (IPSTA), the delay has been on account of many traders yet to get clearance form the Reserve bank of India to open dollar accounts.
The First Commodities Clearing Corporation of India (FCCCI) had opened its dollar account last week, the day the Forward Markets Commission (FMC) had given the final clearance for starting the dollar trade. The trade is to be taken up by the International Commodity Exchange (ICE), promoted by IPSTA.

However, IPSTA president Kishor Shamji said that though most of the members had applied to the RBI for opening dollar accounts, the RBI was scrutinising each case as it involved trade in a foreign currency and hence the delay. The members were opening their accounts through the institutional clearing members, IndusInd Bank, Global Trust Bank and the Union Bank of India.