Commodity OnlineNEW DELHI : As the Futures trading ban on four commodities lapsed, confusion is prevailing among the traders whether it is a sign of re-starting it or whether the government will deliberately keep it hanging.
The latter may be realistic because the government is already in the midst of a crisis with terrorists hitting with impunity and the government caught napping. With less than a year for the elections, it has to act or at least show to the people that the government is alive and kicking.
Some section of media reported that this is the first gift of the prime minister after he took over the finance ministry. But the prime minister may not be even in the loop about this ban being lapsed.
“It will take more than a month to stabilize and restart the entire trading pattern,” said Amit Shah, a Cochin based rubber trader.
He said there are technical issues to this aspect. “More than technical there are human interface. A section of people in both the sector and the government lobbies are trying to scuttle this which is why I said a month,” he added.
Anticipating a spurt in rubber prices, stockists are withholding the stocks of rubber. The rubber prices have touched a new low this month. But in the case of other banned commodities, stockists will not be able to keep it for longer as they are perishable.
