Mumbai: The relisting of wheat and four other contracts has not restored the confidence or pre-suspension volumes in the Indian commodity futures market, the Forward Markets Commission (FMC) chairman has said.
“The restoration of wheat (suspended in February 2007) and four other commodities suspended in May 2008 has neither restored the market confidence nor their pre-suspension liquidity/trade levels,” B.C. Khatua said in the India Commodity Yearbook 2009.
Indian commodity futures market resumed trade in wheat in May 2009 while the four other suspended commodities—gram, soya oil, rubber and potato—resumed trade late last year.
India still has a ban on futures trade in tur, urad and rice, while sugar futures have been suspended till 31 December.
India Commodity Yearbook 2009 is an annual compendium of commodity data and trends and is published by National Collateral Management Services Ltd, a subsidiary of the National Commodity and Derivatives Exchange.
Separately, a member of the FMC said the regulator may soon ask commodity bourses to either revive or remove illiquid contracts from trading.
Illiquid contracts are those which are not traded regularly.