FMC, commerce ministry spar over futures trading ban

The government may extend the ban on futures trading in soyoil, rubber, chickpea and potato when it expires next month, and is expected to retain export curbs on rice and wheat for at least three months, a top official said. “Prices of commodities remain a concern. It is unlikely that we will relax the ban on futures trade in four commodities,” commerce secretary G K Pillai said on Monday.

India has banned several farm futures and restricted food exports, hoping the moves would help contain inflation, which has risen to a 13-year high of nearly 12 per cent. On May 8, futures trading in soyoil, rubber, chickpea and potato were suspended for four months till September 6. Earlier, contracts of wheat, rice and two varieties of pulses were banned. The government has also banned exports of wheat and non-basmati rice. Until the new crop comes, whatever restrictions are there will stay in place, Pillai told reporters.

ENS adds: The Forward Markets Commission, however, said it was unaware of any such move. “Even the consumer affairs ministry, the nodal ministry for the FMC and the commodities market, is unaware of this. Most likely the commerce secretary was giving his personal opinion,” FMC Chairman BC Khatua said.