labels: economy - general, agriculture (infrastructure), markets - general
Futures trading in farm goods may face ban, says Pawarnews
21 February 2007

Mumbai: History may repeat and 'futures trading' in agricultural commodities in India may soon come to a close if prices of essential commodities continue to surge.

"I do not know how long I will be able to resist (the pressure),'' food and agriculture minister Sharad Pawar told a conference of vice chancellors of state agricultural universities in New Delhi.

In view of the rising inflation, political parties, especially the UPA partners, have been demanding a ban on futures trading in agricultural commodities, which is attributed to spiralling prices of essential commodities.

Of late, the number of people opposing futures trading in agricultural commodities has been swelling day by day, he said.

The parliamentary standing committee on food and public distribution also has opposed futures trading in farm products, saying it helps in inflating commodity prices.

Pawar, however, said that there was no evidence that futures trading led to price rise in commodities. He pointed out that prices of urad and tur are still high in the market despite a ban on futures trading in these products.

"When the economy is growing at 9 per cent and growth in money circulation is 3-4 per cent, prices are bound to rise if there is a demand-supply mismatch," Pawar pointed out .

Under coalition politics, if all parties agree on the issue of withdrawing agricultural commodities from futures market it may finally prevail, Pawar added.

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Futures trading in farm goods may face ban, says Pawar