Futures trading in wheat may start this week

NEW DELHI: Futures trading in wheat is likely to resume this week on the three national commodity exchanges -- NCDEX, MCX and NMCE -- after nearly two-and-half years of ban which ended last week. On May 15, the Centre lifted the ban on wheat futures that was imposed in February 2007.

"The regulator will take at least 3-4 days to approve wheat futures contracts from the day the commodity exchanges submitted their proposals," Forward Markets Commission Chairman B C Khatua told reporters.

NCDEX and NMCE have already submitted their applications, while MCX is expected to apply on Monday. Khatua said, "We will examine in detail the proposed contract specifications of each bourse before giving the nod."

According NMCE Managing Director Kailash Gupta, "We have already sent our proposal seeking permission to allow wheat futures contracts."

NMCE hopes to launch June-onward contracts, he added. MCX Managing Director and CEO Joseph Massey said the exchange would submit its application with the regulator today.

Sources said the decision to lift the ban on wheat futures was taken by Consumer Affairs Minister Sharad Pawar last month.