Govt to set up panel to curb price volatility in commodities

The government today said it will set up a committee within a week to advise on ways to curb volatility in prices of commodities in the futures market.

“We are in talks with the regulator Forward Markets Commission (FMC) and will constitute a advisory committee within a week,” Food Minister K V Thomas said on the sidelines of a seminar here.

The committee,which will consist of farmers,industry and media,will help the government to bring down the volatility in prices in the futures market,he added.

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The decision to set up a committee comes in the backdrop of recent price volatility witnessed in certain agricultural commodities,especially guarseed.

On the proposed Forward Contract Regulation Act (FCRA) Amendment Bill,the minister said the bill is before the Cabinet for consideration.

He said it is expected to be cleared in the Monsoon session of Parliament.

The FCRA bill aims at developing the commodities futures market by strengthening the regulator FMC by arming it with financial autonomy. It also proposes to facilitate the entry of institutional investors and introduce new products for trading.

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Currently,there are 16 regional and five national level commodity bourses in the country.