January 22, 2009

India has refused to resume wheat futures trading, disappointing traders who had hoped growing stocks and falling prices would encourage the government to lift the ban.

Farm Minister Sharad Pawar said there is no plan to allow futures in wheat and the government will not have plans for that.

With forecasts for bumper winter crop harvests and falling prices, some trade officials had expected that the government would allow resumption in futures trading for wheat, halted two years ago amid criticisms it was pushing up prices.

Some analysts believed that ministers do not wish to risk upsetting allies by agreeing to trade in one of the country's most important staples before votes are cast in national polls due by May.

Pawar said this year's winter crop harvest would increase from a year ago, while wheat production in 2009 would exceed last year's 78.4 million tonnes.