Coriander tops in agri commodity turnover on MCX

MUMBAI, Aug 27 (Reuters) - Coriander became the largest trading agri commodity by turnover for the first time on the Multi Commodity Exchange of India (MCX) as traders’ participation rose on hopes of less intervention in the commodity, analysts said.

Total turnover in the commodity during Aug. 1 to Aug. 14 stood at 6.75 billion rupees, higher than mentha oil, which had a turnover of 5.83 billion rupees, according to the data from the regulator Forward Markets Commission (FMC).

Coriander futures was launched on July 28 on the MCX. India is the world’s largest producer of coriander with a market share of about 70 percent.

“It’s a commodity which has no role in rising inflation. So intervention from the government is not expected, which is bringing in more participation,” said Chowda Reddy, an analyst with Karvy Comtrade Ltd.

After banning futures trade in rice, wheat and two varieties of lentils in February 2007, India suspended soyoil, potato, rubber and chana futures in May 2008 for four months to help check inflation.

Traders, who were showing active interest in other spices, are now keenly participating in this spice futures trade also, said an analyst with Angel Commodities Broking Pvt Ltd.

Other spices listed in the futures market include jeera, pepper, turmeric, chilli, cardamom and mentha.

At 1:05 p.m., the most-active coriander September contract MCORU8 was trading at 9,000 rupees per 100 kg, up 2.48 percent on MCX. (Reporting by Debiprasad Nayak, editing by Prem Udayabhanu)