India's apex commodities market regulator the Forward Market Commission (FMC) says there is no plan now to ban futures trading in any other commodity.
FMC Chairman S Sundareshan told reporters that the regulator is not considering a ban on any new commodity from futures trading because inflation has now come below the six per cent mark.
FMC had banned futures trading in urad, tur, wheat and rice two months back, after an unprecedented price rise in essential commodities. Political pressure, especially from the Left parties, was said to be the main reason that compelled the Manmohan Singh government from banning the futures trading in those commodities.
A section of political leaders and Members of Parliament continue to pressurize the government, urging it to ban futures trading in all essential commodities in the country.
In the wake of debate on commodity futures, FMC Chairman met with Finance Minister P Chidambaram in New Delhi on Tuesday and made a presentation to him on futures trading in commodities.
"There is no proposal to ban any new commodity," Sundareshan said after the meeting Chidambaram.
In his presentation to Chidambaram and other Ministry officials, Sundareshan pointed out that futures trading in commodities in India uses is one of the best regulated mechanisms in the world.
But FMC said some policy shortcomings are hampering the futures trading operations.
A five-member committee headed by Planning Commission member Abhijit Sen is now studying "the extent of impact, if any, of futures trading on wholesale and retail prices of agriculture commodities."
