Futures trade not driving up farm prices, says minister
20 Nov 2010
The growth in both volume and value of trade in agricultural commodity futures in India has more to do with the reintroduction of some commodities rather than speculation or profiteering, minister of state for agriculture, consumer affairs, food and public distribution K V Thomas has stated.
The volume of trade in agricultural commodity futures in the country increased 102.59 per cent to Rs10,13,379.97 crore in the 10-month period between 1 April 2009 and 31 January 2010, the minister stated in a written reply in the Rajya Sabha on Friday.
The over 100 per cent growth in trade value of agricultural commodities during the April-January 2009-2010 period has been due mainly to restoration of trading in suspended agricultural commodities, viz, chana, wheat, soyoil, potato and rubber, as well as higher volume of trade in guarseed and guargum, the minister said.
In fact, trade value in agricultural commodity futures had more than halved to Rs6,27,000 crore in 2008-09 from Rs13,17,000 crore in 2006-07, due to suspension of trading in a number of essential commodities during 2007-08 and 2008-09, he said.
The increase in agricultural futures trade during April-Jan 2009-10 has also been due to increased volatility in non-essential commodities like guar seed and guargum.
Even at this volume/value of trade, the current level is 7.52 per cent lower from the level achieved in 2006-07, he added.