In view of the spurious availability of the pesticides and for the safety of the farmers and the good health of the crops the Securities and Exchange Board of India (SEBI) has suggested a method to prevent the spurious sale of pesticides in the market. There was a news that last year there was huge stock of spurious pesticides, which created problem for the farmers and the crop during the whitefly menace.
The agricultural commodities are classified into three categories -- Sensitive, Broad and Narrow. As per the SEBI , commodity bourses need to disclose about name and units of the commodities; source of data; average deliverable supply (production plus imports) during past five financial year; current year deliverable supply, classification of the agricultural commodities on the basis of -- sensitive, broad and narrow.
Also, they also need to disseminate information about members as well as client limit along with position limits for each of the commodity traded on their exchanges.
According to SEBI, the exchanges "shall prominently disseminate on their websites" such information in a prescribed format.
Sensitive agricultural commodities are prone to Government Interventions or could have seen frequent price manipulation in the past.
With an aim to provide necessary information to the stakeholders, SEBI asked commodity exchanges to "prominently" display details of deliverable supply of agricultural commodities on their websites in a prescribed format. The deliverable supply for an agricultural commodity is production plus imports".
This will come into effect immediately, the Securities and Exchange Board of India (SEBI) said in a circular.
In July last year, SEBI had prescribed a principle based methodology for revising the commodity-wise numerical value of overall client level open position limits for agricultural commodities with reference to the 'deliverable supply' of the such commodities available in the country during a financial year.
Krishi Jagran/New Delhi