The government today said, it may ban futures trade in highly volatile agriculture commodities. It has also asked Foward Markets Commission, FMC, to monitor the price movement of some agriculture commodities. Food and Consumer Affairs Minister K V Thomas told reporters in New Delhi that if need arises, those items where high fluctuations are seen, will be pulled out of the futures market. Mr Thomas added that price situation in the futures market will be reviewed with FMC this week.

At present, futures trade in urad, arhar and rice is banned, while it is permitted in wheat, sugar, soya oil, mustard seed, soyabean and some others. There are five national and 16 regional exchanges in the country. FMC regulates these bourses. The Commission is already monitoring the price movement of five agricultural commodities – potato, chana, soyabean, soya oil and mustard seeds.