UPA constituent NCP today demanded a ban on commodity exchanges,contending that these encourage speculation and stoke inflation.
Participating in the debate on General Budget in Rajya Sabha,Ishwarlal Shankarlal Jain said these exchanges do not help farmers.
“There is a need to ban commodity exchanges… Commodity exchanges should be banned since they do not help farmers.
Sans these,there would be no speculation and inflation will come down,” Jain said.
The statement assumes significance since NCP chief and Agriculture Minister Sharad Pawar was earlier holding the portfolio of Food and Consumer Affairs Ministry which oversees the functioning of commodity exchanges.
According to commodity market regulator Forward Markets Commission (FMC),India has 21 commodity exchanges and their turnover rose 54 per cent to Rs 173.69 lakh crore till March 15 this fiscal compared to Rs 112.86 lakh crore in the same period last year.
Agriculture commodities contributed to Rs 20.33 lakh crore to the total turnover during the period,up by 49 per cent from Rs 13.63 lakh crore.
According to the FMC data,the turnover from bullion rose by 91 per cent to Rs 98.59 lakh crore till March 15,2011-12,from Rs 51.70 lakh crore in the year-ago period.
Turnover from energy commodities,like crude,rose by 24 per cent to Rs 27.36 lakh crore from Rs 22 lakh crore in the review period.
Similarly,turnover from metals like copper rose by over seven per cent to Rs 27.40 lakh crore till March 15 in the current fiscal.