Futures and Commodity Market News

Fri May 16, 2008

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NEW DELHI, May 09, 2008 (AsiaPulse via COMTEX) -- A day after banning futures trade in four food commodities and persuading steel producers to slash prices, India's government on Thursday said more measures were in the offing to curb inflation, which should ease in 8 weeks.

"Government is not helpless and has means to ensure prices are brought down. More measures - both administrative and fiscal - are in the offing to control inflation," Minister of State for Industry Ashwani Kumar told reporters here.

He said iron ore, steel and cement will remain under the government scanner and that a series of calibrated measures should ensure that inflation is brought down by at least one percentage point in the next two months.

Prices of wheat, rice and edible oils have already come down between March 1 and May 6, Mr Kumar said. Wheat prices have declined by 1.6 per cent, rice by 9.1 per cent and edible oil by over 18 per cent, he said.

The government yesterday suspended futures trading in gram, refined soya, potato and rubber for four months - a move aimed at arresting speculation-driven price rise to cool inflation that is over 7.5 per cent now.

Besides, steel producers announced a cut in prices by up to Rs 4,000 (US$96) a ton after a meeting with Prime Minister Manmohan Singh on Wednesday.

(PTI)

(C) 2008 Asia Pulse Pte Ltd

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