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NCDEX Potato Surges On Firm Physical Demand: April 17, 2012

ByCommodityOnline
Published 04/17/2012, 05:05 AM
Updated 05/14/2017, 06:45 AM

Potato spot as well as futures traded on a bullish note on Monday, due to demand in the domestic markets and settled higher by 0.61% and 1.09% respectively.

As per circular issued by NCDEX dt April 10, 2012, A Minimum Initial Margin of 10% of the value of the contract or VaR based margin whichever is higher will be imposed on all running contracts and yet to be launched contracts of potato with effect from beginning of trading day Thursday, April 12, 2012.

It is clarified that the Special Margins, Additional Margins or any other margins levied shall be over and above the revised Minimum Initial Margin.

Production Scenario

The cold storages are said to be full to the extent of 95% of their capacity. The markets participants expected the production to cross last year’s levels, but now they expect the production to fall than last year.

According to the initial estimates of National Horticultural Research and Development Foundation (NHRDF), potato output in the season 2011-12, is estimated higher at 43.6 mn tn compared to 40 mn tn last year. However, markets are expecting further decline in output due to late blight disease by 20%.

The output in UP and West Bengal, the two biggest potato growing states is expected to be lower at 12.8 mn tn (13.6 mn tn in 2011) and 10-15% (13.3 mn tn in 2011) respectively.

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