FMC to urge govt to lift ban on wheat Futures
Commodity Online MUMBAI: Finally, the Forward Markets Commission (FMC) has decided to approach the Centre for lifting of ban on Futures trading in wheat and certain pulses.
Around seven months ago the government had banned Futures trading in wheat and some pulses, fearing rise in inflation rates.
The government had banned futures contracts on tur and urad in January this year, followed by wheat and rice on February 28 to control inflation.
Many studies done following the ban seem to suggest that the rise in prices was a result of supply-demand mismatches rather than futures trading. This has now prompted the FMC to ask the government to revise their earlier decision.
The government had appointed a committee under the chairmanship of Planning Commission member Abhijit Sen in March this year to study the impact of Futures trading on prices.
The Sen Committee is widely expected to endorse the view that prices are determined by factors such as demand and supply.
The FMC, meanwhile, had appointed IIM-Bangalore to study the impact of Futures on prices.
The NCDEX also called for resuming Futures trade. The wheat sowing season will begin by October end and farmers should have a hedging facility. Hence it is prudent for the government to permit new contracts to be launched by next month, the NCDEX said.
MCX SILVERMICRO 30 June 2012
contract was trading at
Rs 55960 , up Rs. 228 . What's your view on it?
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