The Centre may not extend the ban on the futures trading of four agricultural commodities beyond September. For controlling climbing inflation, the government had suspended futures trading in Soyoil, potato, rubber and chickpea for a duration of four months in May.
?There is no plan to extend the ban on futures trading of agricultural commodities,? B C Khatua, Chairman, Forward Markets Commission told FE.
He said that there was no linkages between the commodity prices and ban on futures trading.
Even agriculture minister Sharad Pawar and an official panel probing the impact of futures trading on commodity prices had said earlier that there was no clear link between the two.
Even in exactly a month after the government suspended futures trade in refined soy oil, potato, chickpea and rubber for four months in June, an analysis done by FE indicated that, no commodity apart from potato has shown significant decline in the prices.
According to data from the spot market of NCDEX and private traders, Refined soya oil spot market prices, which was blamed for the spurt in edible oil prices, had in fact risen by almost 11% since futures were suspended.
The government suspended futures in wheat, rice and two varieties of lentils in early 2007.