NEW DELHI (Commodity Online): Govt may make commodity Futures scapegoat for its own failures to curb the price rise PR disaster.

Futures trading in commodity exchanges have been at the forefront of all hostilities in the price rise gaming in India. Now that all the staple food prices are at its highest steam, the government is planning to make yet another move to ban Futures and then escape itself from the real issue of addressing them from the root itself.

The real cause, as the government is in the know how, is the lack of production and strain in supply. Now that this price rise is going beyond government’s control, the Finance Minister has stated in the Parliament that the government is keeping a close watch on the Futures trading.

The food articles index rose an annual 15.6 per cent as at November 14, up from the previous week's 14.6 per cent rise.

This translates into saying that the commodity exchanges are directly responsible for the price rise. With one of the worst public relation wings these exchanges have, it will be difficult to counter such claims as has been observed in the past. So far the exchanges have only reacted to the government moves.

Proactive measures should have included informing the public that India is facing its worst drought since 1972 with adverse weather conditions, which has put farm products under severe stress, a measure that the government ideally should have done.

When there is no response from these exchanges, public tends to believe that the government version is true and the villain gets into the dock.

But the relief is that the FM has stated that the current spell of inflation in the country was due to a shortage of food items than trading in exchanges.

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