FMC tracking prices of 5 farm commodities

Commodities regulator seeks to curb possible speculation and price increase in the backdrop of poor monsoon

Commodities market regulator FMC is keeping a close watch on five agricultural commodities -- potato, chana, soyabean, soya oil and mustard seeds -- to curb possible speculation and price increase in the backdrop of poor monsoon.

"We are monitoring the price movement of five agricultural commodities -- potato, chana, soyabean, soya oil and mustard seeds. We are keeping a close watch on these essential items to curb any speculation and price increase," Forward Markets Commission (FMC) Chairman Ramesh Abhishek told PTI.

New steps will be taken as and when required, he said, adding that the recent initiatives have helped bring down speculative activities in the commodity bourses.

In the wake of poor monsoon, prices of essential commodities are inflating in most parts of the country.

Monsoon, crucial for Indian agriculture, is deficient by 21% in the country. Poor rains have affected sowing of major kharif crops like rice, pulses and oilseeds.

On guarseed and guar gum futures, Abhishek said, "The commission has not yet taken the decision to relist the banned gaur futures."

In March this year, FMC banned futures trading in guarseed and guargum, which is increasingly used in oil and gas industry, to curb price volatility and speculation.

According to FMC data, the turnover of commodity exchanges rose by 8.95% to Rs 41,71,803 crore till June of the current fiscal, against Rs 38,29,230 crore in the same period last year.

Currently, there are five national and 16 regional exchanges in the country.