Commodity markets regulator the Forward Markets Commission has levied a 10% minimum initial margin on sugar and wheat futures contracts to check price rise, reports said.
Following a direction from the commodity markets regulator FMC, commodity exchanges MCX and NCDEX announced in separate circulars that sugar and wheat futures will attract initial margin of 10% of the value of the commodity with effect from Aug 6.
Exchanges have raised the initial margin to restrict the participation of speculators and curb the price rise in sugar and wheat futures.
Due to the deficient monsoon so far this season India's sugar output has been now revised downwards to 25mn tonnes or even below from initial 26mn tonnes. Brazil cane output has also been erratic. Thus, international prices up have risen on supply concerns.
In June and July, the first two months of the monsoon season, rainfall deficiency stood at 19%.