The Hindu Business Line : Farmers’ associations want ban on wheat, rice futures to go

Participating in a meeting organised by the Forward Markets Commission (FMC), the associations said “futures market would provide the farmers with much more flexibility in their market operations and consequently better price realisation”.

Participants

The meet, to familiarise the farmers with futures trading, saw participation from organisations such as Shetkari Sangathan, Kisan Coordination Committee, Bhatiya Kisan Union, Federation of Farmers Association, Kisan Jagriti Mandal and the Karnataka Pradesh Red Gram Growers Association.

“The Government must have realised by now that the ban on futures trading has not stopped the rise in wheat prices, which are governed by demand and supply situation in the country,” the associations said.

The participants also felt that the government should not abruptly change its policy.

More autonomy

Speaking at the programme, the FMC Chairman, Mr B.C. Khatua, said it had now become necessary to strengthen the regulatory framework of the futures markets. “The regulator needs more autonomy and regulatory authority in order to ensure an efficient market and transparent price discovery.”

He hoped that FC(R) Act Amendment Bill would be passed at the earliest. The strengthening of the regulator would definitely improve the credibility of these markets and would consequently result in wider participation, he said.

Mr Khatua said the development of the futures market would impact the spot market structure and practices by bringing in efficiency to the supply chain machinery and developing grading, processing, warehousing, and assaying facilities.

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