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| FMC not to ban sugar futures; will scan prices |
| Press Trust of India / New Delhi Apr 23, 2009, 14:07 IST |
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Commodity market regulator Forward Markets Commission (FMC) has said it does not intend to suspend futures trading in sugar in the near future, even though traders' association are demanding a ban on sugar futures to arrest price rise.
"As of now, there is no ban on futures trading in sugar. There are no such plans even in the near future," FMC Chairman B C Khatua told PTI.
As decided by the Committee of Secretaries (CoS) yesterday, the FMC will monitor the price movement of sugar in the futures market, he said.
"The CoS has reviewed sugar prices and asked the FMC to watch sugar prices in the futures market and take steps if and when necessary," Khatua said, adding that futures trading is not responsible for the rise in sugar prices in the spot market
The demand for suspension of sugar futures arose following an unprecedented rise in prices of sweetener in the physical market in the last couple of weeks.
Mumbai-based Bombay Sugar Merchants Association had sought ban on sugar futures. It had attributed the latest price spurt to unbridled speculation in the futures market.
Sugar prices in the country has increased to Rs 27-28 a kg in retail markets from Rs 18-20 per kg a year ago. Sugar production is estimated to decline to 15 million tonnes from 26.4 million tonnes in 2007-08 season (October-September).
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