Tuesday, 18 November 2008

Govt ban on 4 commodity futures may go end-Nov

MUMBAI (Reuters) - Trading in four commodity futures in India may resume after a temporary ban lapses at the end of November, the futures market regulator said on Tuesday.

The government had suspended trading in soyoil, chickpea, rubber and potato futures in May under pressure from its then leftist allies who blamed the futures trade for surging prices.

The ban was initially for four months but was later extended till November.

"If the government doesn't intervene, they go," B.C. Khatua, chairman of the Forward Markets Commission (FMC), told reporters on the sidelines of an industry meeting. "There is no case for continuing it."

He said the FMC was preparing a status report on the commodities market for the government and would urge the resumption of trading in the four commodities.

"Inflation has come down below 10 percent... things are looking good," said Yashwant Bhave, secretary in the Consumer Affairs Ministry. "It is up to the FMC to decide on resuming trade."

The FMC comes under the purview of the Consumer Affairs Ministry.

Inflation rate in early November fell to 8.98 percent, the lowest in almost six months and sharply off an early August peak of 12.91 percent.

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