Business Standard

Does a ban on commodities futures trading help govt solve inflation woes?

Futures trading in commodities has been banned at the drop of a hat despite numerous past committees and panels finding no direct linkage between such trading and price rise

Pulses, chana dal

Sanjeeb Mukherjee New Delhi
Ahead of the kharif harvest, several industry associations, particularly those working in the field of edible oils and oilseeds value chain have urged the government to restart futures trading that has been suspended for almost eleven months now.

The argument given by the associations and other stakeholders is that absence of a well-functioning futures market has denied them the chance to hedge their risks despite sharp fluctuations in the international markets.

The associations said in the past few months, global edible oil markets have fluctuated by 10-12 per cent in a day. However, it has been seen that whenever international

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First Published: Sep 20 2022 | 7:36 AM IST

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