New Delhi: Prices of essential commodities traded in the futures market have increased at a slower pace than of those that remained outside the major commodity exchange NCDEX, a study has shown.
The basket of 15 commodities traded on the National Commodities and Derivatives Exchange, has shown a year-on-year price increase of 5.84%, against 9.04% for nearly 30 items not traded in the futures market, an NCDEX study has found.
However, certain items have shown price increase of as much as 47-48%. But these were both in the traded as also the non-traded baskets.
The traded items included in the analysis for the week ended 3 March, have a weightage of 7.78% in the wholesale price index. On the other hand, the basket of nearly 30 non-traded items have a bearing of 17.6% in the WPI.
In the traded group, the items showing slow price rise included gur, chana, groundnut, seed and soyabean oil. However, prices of soyabean, masur, rapeseed and mustard oil showed higher increase.
While in the non-traded category, prices of vegetables, egg, meat and fish, vanaspati and milk rose marginally. However, prices of edible oil, arhar, jowar and sunflower oil witnessed a significant rise.
NCDEX Chief Executive P H Ravikumar said: “The analysis rules out that futures trading is contributing any food inflationary pressure”.
Rise in crude as well as food prices in the global market has a larger impact on domestic price movement. Still, it is largely due to the domestic supply mismanagement against the increasing demand creating food inflation, he said.
The NCDEX report highlighted that prices of sugar and maize, the most actively traded items on the exchange, slipped in the range of 3-4% in the last one year. While chana prices increased only by 0.64%. The steep rise was witnessed only in rapeseed and mustard oil prices, it said.
In January last year, the government banned futures trading in wheat, rice, urad and tur due to inflationary pressures. Meanwhile, it set up the Abhijit Sen Committee to examine whether futures trading contributed to the unexpected spurt in prices of agricultural commodities.
Inflation has risen to 6.68% for the week ending 15 March. Prices of some of the essential commodities, however, are ruling steady on the exchange despite higher inflation, market experts said.