Advertisement

Help
You are here: Rediff Home » India » Business » Report
Search:  Rediff.com The Web
Advertisement
  Discuss this Article   |      Email this Article   |      Print this Article

Futures trading, inflation not linked: FMC
 
 · My Portfolio  · Live market report  · MF Selector  · Broker tips
Get Business updates:What's this?
Advertisement
May 08, 2008 14:53 IST

Commodity market regulator Forward Markets Commission said on Thursday it doubted that the ban on futures trading in four farm items would help curb inflation, but would surely eat into the turnover of commodity exchanges.

"It is quite unfortunate that the government banned four items despite there being a strong evidence against futures trading (driving up prices)," Forward Markets Commission Chairman B C Khatua told PTI.

The ban may not contain inflation in the coming weeks as there is no direct link between inflation and futures trading, he said, adding that it was, however, sure to "bring down about 60 per cent of the NCDEX's turnover."

"The significant impact would be on Indore-based National Board of Trade that deals in only single commodity -- soy oil," Khatua said.

He hoped that the suspended commodities would once again be available for futures trading.

The government announced on Wednesday suspension of all futures contracts in four commodities - chana, soy oil, potato and rubber -- with immediate effect for four months.

This brings the total commodities suspended for trading to eight, including wheat, rice, urad and tur that were banned last year. 

Khatua, however, assured investors that he would make efforts to bring back all eight banned commodities on the exchange platform.


© Copyright 2008 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
 Email this Article      Print this Article

© 2008 Rediff.com India Limited. All Rights Reserved. Disclaimer | Feedback