Ruchi Soya faces trading probe
Ruchi Soya Industries, the oil and agri-products major, is under government scrutiny for its alleged role in price manipulation of futures trading of guar gum — an industrial derivative of guar seed.business Updated: Jul 06, 2012 00:22 IST
Ruchi Soya Industries, the oil and agri-products major, is under government scrutiny for its alleged role in price manipulation of futures trading of guar gum — an industrial derivative of guar seed.The commodities market regulator, Forward Markets Commission (FMC), had in March this year banned the future trading of guar gum till September 2012, after guar gum prices zoomed ten-fold over a 12-month period.
There had been allegations that Ruchi Soya cornered huge profits by manipulating the price of guar gum on commodity bourses.
Around a month back FMC had submitted its report to the ministry of consumer affairs that dealt with the issue of price manipulation of guar gum in forward trading and alleged role of the company.
“We are scrutinising it and have asked for some more information,” said Rajiv Agarwal, secretary, the department of consumer affairs. The report is yet to be made public. Agarwal refused to commit on any specific timeline as to when the scrutiny would be completed or by when would the government make FMC report public.
A spokesperson for Ruchi Soya denied all allegations of price manipulation of future trading of guar gum trade. “Ruchi Soya has not
received any communication from the Forward Markets Commission or other relevant authorities regarding guar gum trade,” he said.