Extension of ban to hit agri futures, says FMC

Extension of ban to hit agri futures, says FMC
PTI
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First Published: Tue, Sep 09 2008. 12 04 PM IST
Updated: Tue, Sep 09 2008. 12 04 PM IST
New Delhi: Commodity market regulator Forward Markets Commission (FMC) today said that extension of ban on four commodities — soya oil, potato, chana and rubber — will further push down the growth of agri futures.
“The extension of ban in futures trading in four commodities for two-and-half months will have an incremental impact on the market,” FMC Chairman B C Khatua said.
He added the temporary suspension has affected the agriculture segment. Nevertheless, the loss has been covered with the expansion of business in non-agri commodities, he added.
“Even after the suspension, the overall market is growing in positive zone,” he said.
The government last week extended the ban on futures trading in the four commodities till 30 November, which was initially meant for four months when imposed in May.
The top official regulating India’s commodity futures market said FMC had submitted inputs to the government before the decision on the extension was taken. He reiterated that there was no direct link between futures trading and price rise.
The government decided to extend the ban as it was apprehensive about price rise, he noted.
The regulator was, however, hopeful to get back the banned commodity on the exchange after November.
“We hope that the country’s economic situation may get better by November-end and we will definitely bring back the banned items on exchange platform,” Khatua said.
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First Published: Tue, Sep 09 2008. 12 04 PM IST