India Bourse Raises Open-Interest Limits for 17 Farm Contracts

India’s National Commodity & Derivatives Exchange Ltd., the nation’s top bourse for trading farm goods, raised open-interest limits on some commodities.

Caps have been increased in 17 contracts including wheat, soybeans, pepper, turmeric and potatoes after a review by the regulator, the Forward Markets Commission, Vijay Kumar, chief business officer at the bourse, said in a phone interview today.

“If the limits are too small, then there is not necessarily enough trading interest and that in turn effects depth and liquidity in the contract,” Kumar said. “You need certain level of position limits to further build liquidity and permit more hedging in these contracts.”

The Multi Commodity Exchange of India Ltd., the country’s biggest such bourse, also revised open-interest limits on 13 farm commodities, it said in a note on Feb. 25.

The new limits are also meant to ensure that “no one individual or group can actually have positions that constitute a significant share of the market,” Kumar said.

---Editor: Ravil Shirodkar

To contact the reporter on this story: Madelene Pearson in Mumbai on

To contact the editor responsible for this story: James Poole at;

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.