Kharif crop prospects to decide ban removal

The government’s decision on lifting the ban on futures trading in some agricultural commodities when it comes up for review shortly would largely depend on the prospect of kharif crops and the price situation.

The government had banned futures trading in potato, rubber, gram (chana) and soyaoil in May this year for four months and the period comes to an end on September 6. These commodities were added to a list of four other products banned in March — rice, wheat, tur and urad — amid allegations from political parties that futures trading was leading to the price rise.

“We will review the ban on futures trading later this month. We will look into the crop prospects of the kharif season and also the likely price-trend over the next few months,” a senior government official said, adding there is no proposal to ban any other commodity.

 

When asked about the possibility of extending the ban beyond four months, Agriculture Minister Sharad Pawar had said in June, “Let’s see what happens...I think the decision has been taken only for four months. I hope the time will not come to extend the four months period.”