MUMBAI (Commodity Online): Guar Seed futures rose Friday as traders created fresh positions on the back of firm demand in the domestic as well as overseas markets.
At NCDEX guar seed December contract hits upper circuit to Rs.5424 per quintal, higher by 3.88 per cent on 14:40 IST against the previous close.
In the morning session the contract traded at a range of Rs.5165-5430 per quintal. Open interest of the contract is 89460 lots and volume traded is 249170 lots for the time being.
On the back of record high exports, the exports federation has urged the Government to withdraw export promotion incentives and impose export duty on guar seeds.
If Government considers the removal of export incentive and imposes export duty exporters profit margin will be reduced. Traders believe that if India considers imposition of export duty countries like China would be forced to roll back import duty on Guar gum powder and splits and this may benefit India in the long run.
Source : commodityonline.com