Broadbase ban on futures trading: CPM
CPM polit bureau member Sitaram Yechury has sought an immediate ban on futures trading in food grains and essential commodities.
By TNN |
NEW DELHI: CPM polit bureau member Sitaram Yechury has sought an immediate ban on futures trading in food grains and essential commodities.
The government last year had banned futures trading of wheat, rice, urad and arhar and constituted a committee under Mr Abhijit Sen to find out any link between price rise and futures trading.
The committee is yet to submit its report.“It (the ban on only four commodities) is not sufficient. Other essential commodities need to be banned for futures trading so that prices are stabilised,” Mr Yechury said.
A great degree of uncertainty happens in futures trading, he said, adding when speculation is allowed, it is going to benefit only traders. Expectedly, the CPM leader was not willing to accept the view that prices of pulses have only risen despite the ban.
“It would have even much more had it been allowed,” he said. According to the CPM, big players with capacity to hold large stocks and resources to participate in futures trade have benefited from huge speculative gains.
The government last year had banned futures trading of wheat, rice, urad and arhar and constituted a committee under Mr Abhijit Sen to find out any link between price rise and futures trading.
The committee is yet to submit its report.“It (the ban on only four commodities) is not sufficient. Other essential commodities need to be banned for futures trading so that prices are stabilised,” Mr Yechury said.
A great degree of uncertainty happens in futures trading, he said, adding when speculation is allowed, it is going to benefit only traders. Expectedly, the CPM leader was not willing to accept the view that prices of pulses have only risen despite the ban.
“It would have even much more had it been allowed,” he said. According to the CPM, big players with capacity to hold large stocks and resources to participate in futures trade have benefited from huge speculative gains.
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