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Futures trading in wheat to last

After imposing ban on futures trading in wheat, a number of measures were taken like making imports at high prices, the police raids on stocks etc, preventing domestic prices to rise

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NEW DELHI: To buttress his point, Joshi said after imposing ban on futures trading in wheat, a number of measures were taken like making imports at high prices, the police raids on stocks etc, which might have prevented the price from rising in the domestic
market.

"To say that the ban on the futures alone has resulted in this is not very logical," he said. Wheat prices have risen by 100 per cent between February 2007 and February 2008, but in India they went up by just five or six per cent, according to the draft.

Joshi said the measures like imports at high prices, putting restrictions on exports and police raids on stocks are meant to insulate Indian domestic market from global trends,
which have not only resulted in indebtedness of farmers, but also given them negative subsidy.

"Any proposal to insulate commodity market from the global market is necessarily anti-farmers," he said. He said if the policy of insulation on agricultural commodity takes place, the question would arise whether agriculture inputs market should also be insulated. "Farmers can't pay input prices according to global market, and get prices according to the domestic market... that is not logical," he said.

The question would also follow whether the policy of insulation from globalisation would be limited to farm commodities alone or India is going to follow this policy
across the board, he said.

Committee Chairman Abhijit Sen had told us on last Thursday that he would submit the report this week for which the draft was circulated among the Panel members on Saturday. Futures trading is already banned in rice, wheat, tur and
urad.

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