anant1a
New member
India bans futures in rubber, soya oil, potato, chana
NEW DELHI: India on Wednesday banned futures trading in rubber, chana, potato and soya oil in an attempt to contain the price rise in essential commodities and curb the spiralling inflation rate in the country.
According to officials in the Ministry of Finance, futures trading in these commodities have been suspended with immediate effect because the government has been receiving a number of complaints against speculative trading in agri futures trading.
India's Forward Markets Commission Member Rajiv Agarwal confirmed that futures trading in rubber, chana, potato and soya oil have been banned. "Yes, the news on the ban is correct. The government may have taken the step to contain inflation," he told Commodity Online over telephone.
The ban comes just a day after India's Finance Minster P Chidambaram announced that the government was planning to ban futures trading in food commodities, as it struggles to curb soaring inflation and the rising cost of food.
Chidambaram had said that governments across Asia share his worries over speculation in the commodities markets.
India is "facing a very grave crisis on the food front," the minister said on the sidelines of the Asian Development Bank's annual meeting in Madrid.
India has already banned futures trading in rice and wheat. The latest remarks from India's finance minister come as his government confronts growing pressure at home to curb rising inflation.
Inflation has become a major political headache for the ruling Congress-led Manmohan Singh government in India. On last Friday, government data showed that India's inflation hit a 42-month high of 7.57% in the week ending April 19.
A section of agri industry leaders and commodity traders have also been pleading for a ban on future strading in essential commodities, as they said futures trading was leading to speculation and price rise.
NEW DELHI: India on Wednesday banned futures trading in rubber, chana, potato and soya oil in an attempt to contain the price rise in essential commodities and curb the spiralling inflation rate in the country.
According to officials in the Ministry of Finance, futures trading in these commodities have been suspended with immediate effect because the government has been receiving a number of complaints against speculative trading in agri futures trading.
India's Forward Markets Commission Member Rajiv Agarwal confirmed that futures trading in rubber, chana, potato and soya oil have been banned. "Yes, the news on the ban is correct. The government may have taken the step to contain inflation," he told Commodity Online over telephone.
The ban comes just a day after India's Finance Minster P Chidambaram announced that the government was planning to ban futures trading in food commodities, as it struggles to curb soaring inflation and the rising cost of food.
Chidambaram had said that governments across Asia share his worries over speculation in the commodities markets.
India is "facing a very grave crisis on the food front," the minister said on the sidelines of the Asian Development Bank's annual meeting in Madrid.
India has already banned futures trading in rice and wheat. The latest remarks from India's finance minister come as his government confronts growing pressure at home to curb rising inflation.
Inflation has become a major political headache for the ruling Congress-led Manmohan Singh government in India. On last Friday, government data showed that India's inflation hit a 42-month high of 7.57% in the week ending April 19.
A section of agri industry leaders and commodity traders have also been pleading for a ban on future strading in essential commodities, as they said futures trading was leading to speculation and price rise.
