New Delhi: The Forward Markets Commission, which regulates the commodities market, is not considering a ban on any new commodity from futures trading following a dip in inflation to below 6%.
“(There is) no proposal to ban any new commodity,” FMC chairman S. Sundareshan said after meeting finance minister P. Chidambaram.
The government banned futures trading in wheat and rice on 28 February when the Budget was presented in Parliament, while announcing a freeze on launching new contracts till an expert committee submits its report. Earlier, trading in urad and tur futures were banned.
A host of measures led to a decline in inflation to 5.74% on 30 March from a high of over 6.5% in February.
A five-member committee headed by Planning Commission member Abhijit Sen has been asked to study “the extent of impact, if any, of futures trading on wholesale and retail prices of agriculture commodities.”
Sundareshan made a presentation on futures trading to Chidambaram and other ministry officials. The presentation pointed out that commodity futures trading market in India is one of the best regulated in the world.