March 1, 2011 1:29 PM

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No proposal to ban forward trading in essential commodities: Govt

The Government today said there is no proposal to ban forward trading in essential commodities. In a written reply in the Lok Sabha today, the Minister of state for Consumer Affairs, Food and Public Distribution Mr. KV.Thomas said a report submitted by a committee constituted by the government had said that forward trading was not the reason for inflation in the prices of commodities in the country. Mr. Thomas said report found that inflation was primarily due to structural constraint in augmenting supplies coupled with rising demand in a fast growing economy. The Minister said the Forward Markets Commission had resorted to suspend forward trading in some commodities from time to time as a caution to check inflationary expectations. The Minister added that it was t found out that they continued to rise even after its suspension.

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