• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

According to Mr Sharad Pawar, Union Agriculture Minister, there is no link between futures trading and the rise in prices of farm products (Business Line, February 22).

However, the prices of pulses, especially the dhals, do show a downward trend.

The price of urad dhal has fallen by 10-15 per cent in the last fortnight. Since there has not been any change in the supply-side of the commodity and the ruling prices of other articles, the only possible reason for the downward trend of the above can be attributed to the ban on commodity trading of certain items.

It should be noted that in the case of futures trading, there will always be an element of speculation which will cause price variation.

The government's proposal to form an expert group to review futures trading in farm commodities is a welcome step.

T. R. Anandan

Coimbatore

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

More Stories on : Letters | Commodity Markets

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Undeterred by inflation, Survey plumps for high growth

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line