Price manipulators to be dealt with strictly: FMC
Commodity market regulator FMC said on Thursday it is not opposed to speculation in futures markets, but would not allow artificial jacking up of commodity prices that would affect average consumers.
By PTI |
NEW DELHI: Commodity market regulator Forward Markets Commission said on Thursday it is not opposed to speculation in futures markets, but would not allow artificial jacking up of commodity prices that would affect average consumers.
"We are not against speculation, but definitely against price manipulation," FMC chairman S Sundareshan said at the Second Annual Commodities Conference here, organised by the chamber body ASSOCHAM.
Speculation can be tolerated as part of futures trading, but price manipulation will be checked at any cost as economic interests of farmers and consumers are directly involved with the prices of essential commodities, he added.
He said interest of farmers have to be protected as they are the producers of the agricultural commodities.
Farmers by taking part in the commodities futures trading can benefit through price discoveries and risk coverage, he said, adding: "price manipulation will not be permitted in any case at the commodities exchagnes".
He made it very categorical that the commodity regulator keeps a close watch on the price movements at the commodities exchanges, more so for commodities of essential items like wheat and sugar.
Sundareshan, however, ruled out any abnormal price rise in wheat and sugar in recent months and said whatever upward movement took place in these two commodities are quite in sync with the market trend.
He asked the exchanges to improve their performances in physical delivery of the contracted commodities.
"We are working to make the existing delivery mechanism at the exchanges more widespread," he said.
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