MCX withdraws chana contracts

Mumbai, May 9 (UNI) Multi Commodity Exchange (MCX) has withdrawn chana contracts with effect from today.

However, a special margin will be applicable from time to time as and when exchange was declared.

Margins, as per revised guidelines from MCX, stood at five per cent on all long positions for all the MCX chana contracts.

Withdrawal of additional margins would lead to accumulation of long positions, leading to rise in prices. With fundamentals supporting the price rise, the reduction in margins would keep the prices firm.

The Value Additional Tax (VAT) had been reduced from four to one per cent in Rajasthan. This reduction would in effect bring down the taxes by three per cent, therby improving the supply to Delhi market and bringing the prices down initially. Subsequently, as the demand would pick up, the prices too will become firmer as the underlying shortage in stocks are expected to continue further.

UNI VD SSS SKB1622