Ban on futures trading in raw jute urged
The Indian Jute Mills Association has urged the Textiles Ministry to exempt raw jute from speculative futures trading.
By PTI |
KOLKATA: In view of the rising prices of raw jute, the Indian Jute Mills Association has urged the Textiles Ministry to exempt raw jute from speculative futures trading.
In a letter to the Textiles Ministry, Indian Jute Mills Association (IJMA) Chairman Sanjay Kajaria said that futures trading in raw jute till 2004-05 had not created any impediment since the volume of trade was negligible.
However, with several commodity exchanges like National Multi-Commodity Exchange and Multi Commodity Exchange entering into futures trading in raw jute, its prices has risen to high levels and availability has decreased in the market.
During 2008-09, there was sudden escalation in the prices of raw jute by around Rs 210 per quintal during the months of March and April, the reasons of which were unknown.
IJMA said that the price rise had arisen due to "illegal hoarding by traders involved in futures trade".
Kajaria said in the letter that futures trade in raw jute had done more harm than good to the jute industry, which was still a big employer.
IJMA feared that if the price of raw jute escalated further, then it would have an adverse effect on sale of jute goods.
In a letter to the Textiles Ministry, Indian Jute Mills Association (IJMA) Chairman Sanjay Kajaria said that futures trading in raw jute till 2004-05 had not created any impediment since the volume of trade was negligible.
However, with several commodity exchanges like National Multi-Commodity Exchange and Multi Commodity Exchange entering into futures trading in raw jute, its prices has risen to high levels and availability has decreased in the market.
During 2008-09, there was sudden escalation in the prices of raw jute by around Rs 210 per quintal during the months of March and April, the reasons of which were unknown.
IJMA said that the price rise had arisen due to "illegal hoarding by traders involved in futures trade".
Kajaria said in the letter that futures trade in raw jute had done more harm than good to the jute industry, which was still a big employer.
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IJMA feared that if the price of raw jute escalated further, then it would have an adverse effect on sale of jute goods.
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