The commodities market regulator, the Forward Markets Commission (FMC) will again write to the government to not only revoke the suspension of four farm commodities, which were extended on September 6, but would seek the resumption of trading in those commodities trading, which were indefinitely banned last year.
“I expect the ban to be lifted by the year end, as the monsoon crop will have arrived by that time and the prospects for the winter-sown crop is good,” Khatua told reporters on the sidelines of an industry conference. The government had banned futures trading in wheat, rice and pulses in 2007 to control prices and also because of intense pressure from its then Left allies. Later, in May 2008, it suspended futures in rubber, potato, chana (chickpea) and refined soyoil for four months, as prices didn’t show any declining trend.
Last week, the government extended a six-month ban to November 30, despite strong opposition from the FMC.
The country’s wholesale price-index-based inflation has started cooling off since reaching a 16-year high last month, as three interest-rate increases by the central bank since early June and a ban on exports of rice, wheat and edible oils aimed at bolstering domestic supplies, begin to work.
Meanwhile, Khatua said that the FMC would specify guidelines to check delivery defaults in the next 3-4 days.
The need for a stronger regulatory mechanism was demanded, especially by some traders, after defaults in the delivery of certain items, especially jeera, came into focus.