At Rajkot Oilseeds and Bullion Merchants' Association, deals in the official market have been relatively less and majority are said to be done in the unofficial trade outside the exchange. Despite this, the Forward Market Commission (FMC) on Friday accepted the authorities' request to impose special margin to quell the chaotic trading that saw one of the small traders end his life last month. Last month, the FMC had approved the levy of special margin at the Ahmedabad commodity bourses also.

The new special margins effective from Monday at Rajkot were Rs 65 per quintal. If the authorities so feel, theycan further increase the level of this margin to Rs 130 per quintal.

"We have never seen such wild trading pattern in the spot markets," said a local player. "It is sheer manipulation and price rigging, worst of itskind."

Since July 4, the castor futures have gone haywire. It opened at Rs 1,484, dropped to Rs 1,481 before peaking to Rs 1,504.50 on thin volumes and finally closing at Rs 1,496.50. ASMA's rate committee intervened at this juncture and cleared deals at Rs 1,481 per quintal.

At these prices, all outstanding positions had to be carried forward. The bulls had opposed this decision but a director remained firm saying the rate committee has powers to declare prices and clearing. The issue is still being debated and is likely to be settled early next week, traders feel.While the rates from the Rajkot exchange were not available at the ASMA, the September (delivery) futures contract on July 10 opened at Rs 1,491.50 and peaked to Rs 1,520 in just few deals around 50 tonnes.

What is more, despitethe supposedly vigilant authorities, the ASMA traders fear payment crisis looming large, following wild fluctuations in the prices of the futures.

The upshot, sharply lower volumes of just around 20 tonnes (on Friday) against around 5,000 tonnes in normal times. They refused to give details.As the fear of payment crisis looms large over the exchange, the governing board has decided to settle all outstanding positions in castor seed futures. Following hours long meeting all positions estimated in the range of 8,000 to 9,000 tonnes have been settled at the rate of Rs 1,485 per quintal. Board has suspended all deals that have been done after Monday, it is learnt.

"If outstanding positions will not be settled there are chances of payment crisis," said a member of the Ahmedabad exchange. "We would have to `kut' the futures." At Rajkot, authorities are believed to have settled outstanding position on Tuesday at Rs 1,478 there were rumours that local future also met same fate. With high margins, prices tradingis highly restricted as broker community have refrained from trading. Panic has gripped the market.

During the last six trading sessions, future have jumped to Rs 1,504.50 from Rs 1,413 on 1st july, a rise of Rs 91 within a week's time. As big time operators from Mumbai circle have started buying in spot and futures, the prices soared to dizzy heights. After an alleged bull from Mumbai offloaded his positions in the range of Rs 1,445-1,450 prices dropped to Rs 1413.At this juncture another exporter entered, three local brokers also joined with him, it is believed. Informed trading circles say there has been a well planned design at Rs 1435. There was a margin of Rs 6,500 per 10 tonne levied by FMC. At that level, the payment cheques issued by three local brokers are believed to have been bounced, which created an impression that bulls are unable to pay the required margins. This in turn prompted traders to sell.

Soon after the selling wave began, a cartel of bulls began buying in the future.

Then dramastarted, a local shipper, who is believed to have a short positions in the futures, took long positions within a span of a few days. Simultaneously he started buying in spot at much higher level, which had fuelled bull-run, prior to settlement this exporter has biding at unbelievable terms.

On last Friday he has quoted Rs 1505 per quintal, payment term of two months after delivery, at that time spot seed price was Rs 1,475. On Saturday he quoted seed prices Rs 1,600 with at payment term of after three month of delivery. "It is time to take stock. It is the collective responsibility of brokers, bulls and bears that confidence and normalcy are restored as both are part of markets, without whom trade can`t survive. It is time to think and time to act, in right direction. Otherwise we`ll have to lose our business," a director said.

Even when fear persists, traders feel there will be some settlement and normalcy will return next week.