The government will take a final view on forward market trading based on the recommendations of the expert committee appointed recently, Finance Minister P Chidambaram said today. | |
| Replying to queries in Rajya Sabha on inflation, he said the government will take a final view based on the recommendations of the Abhijit Sen committee. |
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| Chidambaram said forward trading has been suspended in some commodities based on the recommendation of the regulator, Forward Markets Commission. |
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| "Although the parliamentary standing committee has recommended banning trading in many commodities, we will take a final view on it once we receive the Abhijit Sen committee report," he said. |
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| The forward market regulator had issued letters to commodity exchanges on February 27 directing them not to list any more contracts of wheat and rice. It also barred the exchanges from allowing traders to take fresh positions in these commodities. |
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| In January, the regulator had issued a similar letter to the exchanges asking them not to list any further contracts in tur and urad. The finance minister said rising commodity prices resulted from a combination of global and domestic factors in 2006. |
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| "High crude oil prices in early 2006, followed by high commodity prices later in the year globally, besides poor procurement of wheat and supply shortages in pulses in the domestic market are responsible for rising prices," he said. |
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