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Chenna/Mumbai Jan. 23 The Centre on Tuesday night banned futures trading in tur and urad until further notice. When contacted, the Forward Markets Commission Chairman, Mr S. Sundareshan, told Business Line: "No comments".

Commodity exchange sources said they received the notice late in the evening asking them to stop trading in forward contracts of urad and tur with immediate effect.

"No trading will take place in these pulses from tomorrow," said an NCDEX official.

Settlement

He said the current open positions would be settled at today's prices. Urad for February delivery closed at Rs 3,245 a quintal on NCDEX. However, tur ended on a negative note on profit booking at Rs 2,476 a quintal for February. The commodity ruled at Rs 2,240 on January 12.

Commodity exchange sources attributed the Centre's move as one to curb inflation that rose to 6.12 per cent for the week ended January 6.

Market players, however, say that demand in the physical market and fears of supply constraints have led to the current spurt in prices of pulses. Both urad and chana hit the upper ceiling of six per cent on the futures market on Monday.

The Centre has been under pressure from the Left parties to ban forward trading. The Left allies of the UPA Government have blamed forward trading solely for the rise in prices of essential commodities.

Market players, on the other hand, say that the spurt is in view of lower production and tight supply, besides rising consumption.

More Stories on : Pulses | Economy | Agricultural Policy | Commodity Exchanges | Commodity Markets

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