Futures and Commodity Market News

Sat May 17, 2008

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New Delhi, May 08, 2008 (Asia Pulse Data Source via COMTEX) -- The government has taken a cautious approach in banning futures trading in four more commodities, Minister of State for Industry Ashwani Kumar said today.

"For the moment, we have taken a cautious approach and decided to ban future trading in four commodities. It is will not have an impact over the next 2-4 months," he said.

The government, yesterday suspended futures trading in channa (gram) refined soyoil, potato and rubber. It had banned futures trading in wheat, rice, urad and tur last year.

The Abhijit Sen Committee, set up to study the impact of futures trade on prices of essential commodities, did not find any conclusive evidence on prices being influenced by forward trading. "Indian data analysed in this report does not show any clear evidence of either reduced or increased volatility of spot prices due to futures trading," the committee had said in its report submitted to the government on April 29.

However, Planning Commission member Abhijit Sen, who headed the panel, favoured continuation of ban on futures tradings of wheat, rice, tur and urad.

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