Govt, FMC differ on futures suspension

It is back to a blame game between the government and the commodity markets regulator over who is responsible for extension of the ban on four farm commodity futures.

In the last couple of days, the government and the Forward Markets Commission (FMC) have differed over who would take the final decision on the suspension, and it has continued even after the ban was extended.

FMC on Friday announced that the ban on chana, soyoil, potato and rubber futures had been extended until November 30. The government had indicated over the last two weeks that there was no decision to extend the suspension.

On Friday, Consumer Affairs Secretary Yashwant Bhave had said the government had left the decision on the suspension with FMC. “I think the regulator is quite competent to decide on its own. We have asked the FMC to take a call, we will have no problem with whatever they decide,” Bhave had said. After the ban was announced, Bhave pleaded ignorance about reasons for the extension.

FMC Chairman B C Khatua had consistently maintained that suspension of four farm commodities was uncalled for and had said it was were for the ban to lapse.