Government can lift ban on the futures trading in wheat, rice, urad and tur in a couple of days. The ban was imposed in 2007 to control the ever increasing prices. Inflation rate is slightly declining, paving the way for lifting the ban. The Forward Markets Commission (FMC) has sent a detailed report on futures trading to the government and the decision is likely to come very soon.

The chairman of the Forward Markets Commission (FMC), B C Khatua held a discussion with the representatives of major exchanges on Friday and expected the lifting of the ban by the end of December or January. He said, "We have done adequate analysis of prices, demand and availability of food articles. We hope that in a few weeks' time, we will be able to start commodity trading in these four commodities too."

Government has already allowed futures trading in rubber, chana (chickpea), potato and soyoil on November 30 after decline in inflation rate to 8 per cent. The government has not issued any notification to extend the ban.

FMC chairman termed the government's move to implement the Warehousing (Development & Regulation) Act 2007 as a good step and hoped that it would allow electronic spot trade of warehouse receipts in electronic exchanges.  

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