India Bans Futures Trading of Four Commodities

05.09.08

Industry News

Late yesterday, commodity markets regulator, Forward Market Commission, banned Indian futures trade in soyoil, rubber, potato and chana for at least four months to curb speculative trade, which has pushed up prices and is feeding inflationary pressure.

Kirit Parekh, a member of India’s top economic think tank said, "The move signals the regulator's attempt to negate the impact of unjustified, speculative prices. The impact of the ban will be felt within a month. Since the ban is now for four months, we think it would be ample time for prices to cool off."