In a one-sided game of bull operators, Prabhudas Jheverchand (not a member of the Rajkot Oilseeds and Bullion Merchants' Association) today committed suicide due to his inability to meet sell commitments made outside the exchange.

The future prices for the September 1998 contract today soard to Rs 1,452 per quintal (100 kg) from the recent low of Rs 1,378 per quintal recorded on June 13, 1998. During the last 45-odd days, the September 1998 contract, which opened on May 1, at Rs 1,305.25, today closed at Rs 1,449 per quintal, thereby gaining Rs 147 per quintal - a rather steep rise. Even at this high price, there are no sellers in the market, traders said.

This development has shocked the oilseeds' trading community of Gujarat which has raised alarm bells, signallingpayment crisis on various commodities exchange trading castorseed contracts. At an hurriedly convened meeting of the members of the Ahmedabad Seed Merchants' Association (ASMA), the authorities today decided to impose a fresh special margin of Rs 6,500 per 10 tonnes on the September 1998 contracts if they touched 1,465 per quintal.

This is in addition to the existing level of Rs 6,500 per 10 tonnes on the positions at Rs 1,435, decided by the Forward Market Commission (FMC) at the time of permitting the September contract in May 1998. ASMA's decision to levy special margin will be applicable to all members from tommorrow, but only if the September contract prices touch Rs 1,465 per quintal.

ASMA president Kailash Gupta, confirming the imposition of the new margin, refused to comment on the ongoing battle in the castorseed market.

Over the past few weeks, castorseed futures prices in Gujarat (both Rajkot and Ahmedabad) have been soaring in the domestic market, and there has been heavy speculation. Moreso after repeated reports of possibility of castorseed shortage in the international markets following fear of failure of Brazil's castorseed crop. Brazil is India's only competitor in castorseed markets.

The recent cyclone that hit the port towns of Gujarat too added fuel to the fire. Despite this, there has been no shortage in the domestic market, but the speculative bulls have gone on a rampage.

"The actual position of Brazil's castorseed crop would be known only in August-September," said a leading trader. "Even in the domestic market, there are no indications of any shortage of castorseed supplies. Despite this, the traders here are unnecessarily bullish," he added.

In addition to the perceived shortage, the rupee weakening against the US dollar, too, fuelled "undue optimism" on the export front, traders said. This therefore, resulted in the bull run.