'Allow only delivery-based forward contracts to control prices '

Indian Merchants Chamber has urged the government to restrict only delivery-based futures trading in essential commodities including foodgrain to control excessive price manipulation. “Instead of futures trading (which is nothing but paper trading) in essential food products, mandate the delivery-based forward trading so that speculators with no genuine interest in commodity markets will not be able to distort prices,” said Dilip Dandekar, president, IMC. Dandekar, however, held delivery-based forward contracts necessary for smooth price discovery. In a letter dated January 19 to Union Finance Minister, Pranab Mukherjee, the IMC president has recommended a series of measures for reining in inflation.