NCDEX to withdraw special cash margin on sugar buy side from 5 June.

NCDEX will withdraw the special cash margin on buy positions of all running and yet-to-be-launched sugar contracts effective on 5 June. Currently, a special cash margin of 25% is levied on buy positions of all sugar contracts. After the change in margin requirement, the total margin additional and special margin including cash margin for buying sugar on the exchange would be 5%. The margin on selling sugar on all contracts would remain at 5%. The decision comes in the wake of low volumes and stable prices of futures contracts of sugar over the last few days. Volumes have been very low and the prices have also not been moving, so, the decision to cut margin may help.