The Hindu Business Line : Pawar in no hurry for convergence of markets

A final decision on the proposed convergence of the securities and commodity market regulators will be taken in New Delhi in consultation with the Finance Minister, Mr P. Chidambaram, and the Finance Ministry, said Mr Sharad Pawar, Union Minister for Agriculture, Food and Consumer Affairs.

"We should not take any hurried decision on convergence," the minister said after hearing arguments for and against convergence. Development of infrastructure and strengthening of the physical market are crucial for the success of commodity derivatives, Mr Pawar said.

Those who participated in the meeting included Mr L. Mansingh, Consumer Affairs Secretary; Mr D.K. Mukhopadhyay, economic advisor; representatives of commodity exchanges and commodity market experts.

The issue of convergence of the securities and commodity market regulators has been engaging the attention of the Government for some months now. The Finance Minister, Mr P. Chidambaram, had referred to it in his last Budget speech.

No sugar shortage: Addressing media persons, Mr Pawar tried to allay fears of a sugar shortage. According to him, against the consumption requirement of 180 lakh tonnes (lt), domestic production was 120 lt, opening stock was 80 lt and imports of raw sugar were 20 lt (including about 10 lt yet to arrive).

"It looks like some unscrupulous elements have created this situation. I want to appeal to all consumers that there is no shortage of sugar," he said. While issuing a warning to speculators, Mr Pawar appealed to the trading community to co-operate.

"If need be, white sugar import will be allowed at a lower rate of duty," the minister said. He also expressed optimism that Maharashtra's sugar output next year (2005-06) would rise to 45 lt from this year's 18 lt, while the normal output used to be 60 lt.

Blaming the previous Government for adopting policies that were not favourable to the sugar sector, Mr Pawar said the overall approach of the United Progressive Alliance Government at the Centre was to favour cane growers, support the industry and protect consumers.

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