By George Iype
SINGAPORE: Global commodities guru Jim Rogers says the Indian government’s decision to ban futures trading in some commodities is “senseless” and “politically motivated.”

In an exclusive interview to Commodity Online, Rogers, the global investor best-known for co-founding the successful Quatum Fund with George Soros, blamed India’s politicians and bureaucrats for curbing commodity futures trading by measures like ban.

India has banned futures trading in commodities like wheat, rice, soy oil, rubber, potato and chana arguing that futures market is leading to price rise in these commodities. ”Someone needs to educate India’s politicians and bureaucrats that futures trading is not causing price rise in essential commodities and inflation,” Rogers said.

He said on the one hand while India is talking of going forward in economic reforms, drastic decisions such as banning commodity futures proves that the country needs to catch up a lot in opening up the economy.

Rogers, author of the best-known books like Hot Commodities and A Bull in China, said India needs to study lots of lessons from China. “Look at China. Price rise and inflation are issues of global debates these days. Every country is affected by these. But countries like China has the right price mechanism strategies while India goes ahead and bans futures trading commodities,” Rogers said.

He said he is always fascinated by India and the opportunities the county has for global investors especially in sectors like information technology. “Yes, certainly, India is a great destination for global investments. But now the Indian stock market is all over-heated. And if you ask me, I will not invest in Indian stock markets because it is over-priced. And that is why it is coming down these days,” he said.

Rogers asked the Indian government to come out with laws to attract investments in commodities sector. “India and China are the movers of commodities business in Asia. But India needs to open up the commodities market. I find it difficult to believe why India has not allowed foreign investors, mutual funds and banks from investing in commodities funds,” Rogers added.