In view of the coronavirus outbreak, all market yards are closed, all manufacturing units are shut, most export activities are closed. But the NCDEX castor seed futures has been hitting upper circuit since last two days on very thin volumes, it added.
"In the absence of the functioning of the physical market due to the COVID-19, the NCDEX futures market is being driven by speculators without any correlation to the physical market fundamentals," Solvent Extractors Association of India (SEA) Executive Director B V Mehta said in a letter to the Securities and Exchange Board of India (Sebi).
To protect the sanctity of the market, the industry body said the Sebi should take suitable action as in the current conditions, the futures market is completely unlinked to the physical market.
"Suitable action may be taken for orderly development of futures market, till the physical market resumes normal operations. We request you to please take necessary action on an urgent basis," Mehta said.
More than 80 per cent of the castor oil produced is exported. For the market to function, it is important that all the participants, including people, actually connected with the trade participate fairly in the market, it added. LUX BALBAL