In order to fight inflation the government has suspended forward trading in four commodities - channa, refined soyoil, potato and rubber with immediate effect for four months.commodities Govt suspends forward trading in 4 commodities for 4 months. Consumer Affairs secretary Yashwant Bhave saidthat the
FMC(The Forward Market Commission) has issued the order tonight(Wednesday) delisting channa (gram), refined soyoil, potato and rubber contracts with immediate effect.

Because of this investors and traders, who have taken positions in these commodities, have to square off their positions.These contracts have been suspended for four months. The already banned items in the future trading are r.ice, wheat, tur and urad. In the wake of high inflation, which is hovering over 7 per cent, the government is faced with all-round criticism for high food prices.

Earlier also Government had taken few steps such as cutting import duties on edible oils and banning export of non-basmati rice, now its the time to contain food rates. Finance Minister P Chidambaram had also said on Monday that “the pressure is to suspend a few more food articles. If rightly or wrongly, people perceive
that commodity futures trading is contributing to a speculation driven rise in prices, then in a democracy you will have to heed that voice.”

In the view of high food prices,there has been a demand to ban futures trading in agriculture commodites. The government had also set up an expert panel under the chairmanship of Planning Commission Member Abhijit Sen to study the impact of futures trading on
prices of agricultural commodities.

Categories: Business
Tags: agriculture, basmati rice, channa, commodity futures trading, consumer affairs, edible oils, Finance, future trading, Govt, Hover, market, Monday, p chidambaram, Planning, planning commission, trading