Centre suspends trading in 4 items

New Delhi, May 7: Amidst the debate over banning futures trading in agriculture commodities, the government has suspended forward trading in chana (gram), refined soyoil, potato and rubber with immediate effect for four months.

"The Forward Markets Commission (FMC) has issued the order today delisting chana (gram), refined soyoil, potato and rubber contracts with immediate effect," consumer affairs secretary, Mr Yashwant Bhave, said.

FMC is the regulator for commodity markets.

These contracts have been suspended for four months and investors and traders, who have taken positions in these commodities, have to square off their positions, Mr Bhave added.

Futures trading in rice, wheat, tur and urad is already banned.

The FMC, however, doubted that the ban on futures trading in the four food items would help curb inflation.

"It is quite unfortunate that the government banned four items despite there being a strong evidence against futures trading (driving up prices)," the FMC chairman, Mr B.C. Khatua said.

"The significant impact would be on Indore-based National Board of Trade (NBOT) that deals in only single commodity — soy oil," Mr Khatua said. (PTI)