Cabinet to decide on futures trade in essential items

Cabinet to decide on futures trade in essential items
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First Published: Thu, Jun 05 2008. 03 20 PM IST
Updated: Thu, Jun 05 2008. 03 20 PM IST
PTI
Rome: The final decision on allowing futures trade in essential items like wheat and rice will be taken by the Cabinet, even as a government-appointed committee has found no conclusive link between rising prices and forward trading, Agriculture Minister Sharad Pawar said on 5 June.
“The decision will be taken by the highest level in the Cabinet,” Pawar told PTI when asked on the issue of lifting the ban on forward trading of essential commodities.
Pawar, however, noted that in the Abhijit Sen Committee report members with an overwhelming majority said there was no proof that forward trading was responsible for rising prices.
The committee was formed last year to study the impact of futures trading on prices of essential commodities.
The government had imposed a ban on futures trading in wheat, rice, tur and urad early last year and on 7 May, banned futures trading in refined soya oil, rubber, potato and gram (channa) for four months.
The decision was taken as part of measures to contain inflation, which has crossed 8% mark.
“I don’t think any new commodities will be added,” Pawar, who also heads Consumer Affairs Ministry that oversees the futures market, had said in New Delhi last month.
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First Published: Thu, Jun 05 2008. 03 20 PM IST