Govt may ban futures trading in maize

"There is a proposal from the Department of Consumer Affairs to ban futures trading and export of maize because of a steep rise in its price," Ministry of Commerce & Industry's Department of Commerce Secretary Gopal K Pillai told reporters on the sidelines of a conference here on Friday.

"We would be possibly reviewing (the issue) sometime next week, then the decision will be taken," Pillai said.

 

There would, however, be no ban on oilseeds futures trading as not much of a price rise in oilseeds has been witnessed, he said.

"We will ban futures trading and exports of items where we see price increases much beyond the normal levels because of speculation," Pillai said.

On maize, Pillai said though it was not a major item on the wholesale price index (WPI), a ban on maize exports "is needed due to the steep increase in its price." Maize is primarily used as poultry feed. "It is not a major item in WPI, but the poultry industry is hit hard due to the rise in its price," he said.

In view of the rising prices, the government had already banned futures trading in items such as rice, wheat, tur and urad.

It had also imposed a four-month ban on futures trading in potato, chana, soyoil and rubber as a precautionary move to check price rise and control inflation. The Left parties have been clamouring for a ban on futures trading of 25 essential commodities.

Commenting on inflation crossing the 11 per cent mark, Pillai said high inflation was expected due to the hikes in petrol price and ATF. Inflation would be on the higher side for some more months, he added.