Kerala seeks ban on futures trading in pepper

KOZHIKODE: Traders and farmers of Kerala have sought a ban on futures trading in pepper till the fall in prices are checked effectively, saying that on-line trade has made the market 'highly volatile'.

"Gambling sources in on-line trading have taken control of the market recently resulting in sharp decline in the prices even though there is a heavy demand for the produce," Malabar Produce Merchants Association, President J M Ahamed Koya said.

On Wednesday, traders and farmers, representing different forums, at a meeting decided to approach the Forward Marketing Commission to declare a ban on futures trading, he said.

Koya said traders were finding it more and more difficult to cope with the constant changes caused by price fluctuations arising out of on-line trading.

"While pepper prices are actually expected to go up, they have come down alarmingly in recent weeks owing to speculative trading which pose a serious danger to the farmers," he said.

A convention of farmers and traders would be held here on October 2 to chalk out the future course of action, he added.

Transparency in business as noticed when Indian Pepper and Spices Trade Association was managing futures trading was not evident now, he alleged.