May 5, 2009
India wheat futures ban may be lifted soon
India's commodity futures market regulator, the Forward Markets Commission, expects a ban on wheat and rice futures to be lifted soon as domestic stocks of the grains are comfortable and on expectations of a good crop.
"In a purely economical and logical terms no ban should continue," Chairman B.C. Khatua told Dow Jones Newswires, referring to the ban on wheat and rice futures trade.
India's federal government suspended futures trading in wheat, rice and some pulses in early 2007, blaming futures trade for a sharp rise in local spot prices.
"We would certainly like the prices to be more realistic and beneficial to both the farmers as well as to the consumers," Khatua said.
The relisting of these commodities would help total turnover on commodity exchanges to rise by 40 percent during the financial year started April 1, Khatua said.
