BJP demands investigation of MNCs role in sugar price scam

MUMBAI: BJP leader, Kirit Somaiya, has demanded an investigation into the role played by several multinational companies for speculative activity on commexes resulting in the recent sugar price spurt.

"Sugar prices have gone up from Rs 15.50 per kg in April 2008 to Rs 27 per kg in 12 months. It is understood that heavy trading and speculative activities has been undertaken by multinationals in Indian Commodity Exchange, MCX, by MNCs such as Glen asia, Australia Wheat Board and Glencore," Somaiya said in a statement here today.

The BJP leader also asked for an inquiry into transactions by MNCs on the commodity exchange from October 2008 till date.

Somaiya demanded an investigation in futures & options contract, speculative contract, settlement, delivery, stock of MNCs, stock holding by MNCs and other measures and details about the position at the commodity exchange.

It is understood that some MNCs had standing /speculative position of 60,000-tonnes in June and 30,000 tonnes in July, Somaiya said.

Somaiya also questioned why the Government delayed the decision to ban speculation of sugar at commodity exchanges.

The Government announced the ban on new contracts and on taking new positions in existing contracts of sugar futures till December 31.