FMC considering relaunch of guar futures: Govt

Commodity markets regulator FMC is considering re-launching futures trade in guar seed and guar gum, Parliament was informed today.

     
In March last year, the Forward Markets Comission (FMC) had banned futures trading in guar seed and guar gum to curb price volatility and speculation.

     
The Advisory Committee, headed by the FMC chief, has also suggested re-listing of guar futures."Yes madam, the decision to launch the guar gum and gaur seed contracts in commodities futures market is under consideration of the FMC," Food and Consumer Affairs Minister K V Thomas said in a written reply to the Lok Sabha.

     
The Centre has directed the FMC to take a "considered view" on re-launch of gaur futures keeping in view the recommendations of the Advisory Committee, price trend, farmers' interest and the ground situation, he said.

     
Thomas said the FMC will take a decision on this issue after receiving the report from the national commodity bourses on availability of guar seeds in the market.

   
 Farmers have also made representation for resumption of guar futures, he added.

     
On April 11, FMC had said it would take a decision on re-launching the guar future contract by the end of this month based on the survey report of the bourses.

   
 Guar gum is extracted from guar seed, production of which is expected to be 14 lakh tonne in 2012-13, slightly lower than 17 lakh tonnes in 2011-12. India is the world's biggest exporter of the commodity.