Date:21/11/2007 URL: http://www.thehindu.com/2007/11/21/stories/2007112155190800.htm

Karnataka

Ban on futures trading in essential items sought

Staff Reporter

MADURAI: The Tamil Nadu Foodgrains Merchants’ Association has called for a permanent ban on futures trading in urad, tur, wheat and rice.

In a statement issued here, its secretary, P. Subash Chandra Bose, said that the nation’s economy would be better served only by physical trading of these four commodities. Further, only physical trading would ensure job security for lakhs of workers in mills across the country.

The Centre had imposed a ban on futures trading in urad and tur on January 23. An immediate ban on wheat and rice futures followed on February 28. The step was taken as part of a series of measures to control rising prices of essential commodities.

However, commodity futures market regulator, Forward Markets Commission (FMC), said on November 12 that it would recommend lifting the ban on four commodities. FMC is an arm of the Union Ministry of Consumer Affairs and Public Distribution.

B.C. Khatua, Chairman of the Commission, had said that it would write to the Union Ministry of Consumer Affairs recommending resumption of futures trading in all four commodities that were banned earlier.

The association has written a letter to Prime Minister Manmohan Singh and Congress president Sonia Gandhi expressing concern over such a move. “Lifting the ban will once again activate artificial price escalation in four essential food items of daily use by common man in our country,” the association said in its letter.