Unions seek complete ban on futures trading in commodities

Trade unions today urged the government to completely ban futures trading in commodities to check price rise. They also suggested strengthening of the public distribution system (PDS) and making stimulus packages for industry subject to employment plans.

In a pre-Budget meeting with Finance Minister Pranab Mukherjee, trade unions gave a joint memorandum, suggesting big and multi-national companies be barred from entering retail trade and banking operations.

“All trade unions, in a single voice, have told that price rise must be contained. If you (the government) are serious to contain price rise, put a complete ban on futures trading in commodities,” Centre of Indian Trade Unions General Secretary Tapas Sen told reporters after the meeting.

At present, futures trading in rice and pulses like toor and urad is banned.

“We have given the memorandum on price rise. Essential commodity prices should be contained and PDS should be developed,” Bharatiya Mazdoor Sangh President Girish Awasthi said.

The unions also said income tax exemption limit for the salaried should be raised to Rs 3 lakh a year and there should be no tax on fringe benefits like housing, medical and educational facilities.

Mukherjee, in his opening remarks, said growth in employment opportunities was vital for ensuring an inclusive development process and sought trade unions’ policy suggestions to help the government move rapidly in that direction.

He said the textile sector, the IT/BPO industry, the automobile industry and the metal industry had shown an encouraging growth in employment, and a higher employment growth was also recorded in export-oriented units. He added these were good signs that confirmed that the post-crisis recovery of the economy had taken roots.