Decision on wheat, rice futures ban left for new govt

The Centre is unlikely to take a decision on the ban on futures trading in wheat, rice, tur and urad, a senior government official said.

"In view of the elections, the (UPA) government (would like the decision on the futures ban to be taken by the succeeding government) will like that the decision on futures ban on wheat and rice is taken by the new government," an official said.

At the insistence of the government, commodity market regulator Forward Markets Commission (FMC) had in early 2007 banned futures trading in rice, wheat, tur and urad.

The official said there is no problem in starting rice futures since the contracts were illiquid with hardly any trading when they were in operation.

But, he added, "if the price of rice goes up, again futures will be blamed. So, better leave the decision for the new government, which is expected by May-end."

However, the Consumer Affairs Ministry needs to prepare a detailed report before a cabinet decision is taken, he said.

Meanwhile, the turnover of agriculture commodities continues to decline because of weak market sentiment.

According to FMC data, turnover of farm commodities till February 15 in the 2008-09 fiscal dipped 32 per cent to Rs 5,29,000 crore, from Rs 7,79,000 crore in the year-ago period.

As on February 15, the total volume in agri-commodity exchange NCDEX also declined to Rs 22,974 crore from Rs 33,607 crore a year ago.