Govt unwilling to ban futures trading

NEW DELHI: Unwilling to commit to a definite view on the fate of forward trading in essential commodities, food minister Sharad Pawar told the Rajya Sabha that ���there are a lot of conflicting views���. Mr Pawar���s vacillation comes in the wake of indication that the Abhijit Sen Committee is likely to take a safe view that a given available data, there appears to be no corelation between futures trading and increase in essential commodity prices.

Given the demand from Congress, its allies and the Opposition, the food minister assured Rajya Sabha that the government would address the concerns raised about forward trading in essential commodities.

Mr Pawar said that although trading in urad, tur and rice was already banned, there was no impact on the retail price of urad and tur. In the case of rice, though the ban did stabilise prices. In 2007, under pressure from its allies, the government had banned futures trading in wheat, rice, urad and tur.

On Wednesday, Mr Pawar said that the government would take a decision in 10 days. He has also given the Abhijit Sen committee 10 days to submit its report. ���We will give the panel 10 days to submit the report. If it does not, we will talk to the Forward Market Commis-sion and take a decision on (banning futures trading in other) essential commodities,��� Mr Pawar said.

As part of Budget 2007, the government announced setting up of the Abhijit Sen Committee to study the extent of impact, if any, of futures trading on wholesale and retail prices of agricultural commodities. The committee, which was notified on March 2, was asked to submit its report by May 2007. The committee is currently on an extension.

The 10-day deadline for the committee was announced in the Lok Sabha on Wednesday, in response to demand from UPA allies and the Opposition to bar future trading on some essential commodities especially grain. On Thursday, the agriculture minister merely reiterated this in the Rajya Sabha.