The government has decided to lift ban on future trading of Wheat, a decision that came just hours after the results were announced in favor of UPA.

The ban was imposed to control skyrocketing prices of wheat in the domestic market which could politically cost much dearly to the incumbent government in the general elections.

The country is expected to record bumper wheat crop for the current harvesting season that may be a reason lift ban on the future trading in wheat.

Earlier, left parties demanded ban on future trading of all commodities but the then Finance Minister P Chidambaram imposed ban on wheat and rice and announced to set up a new committee to study the impact of future trading on the food inflation.

An official in the Forward Markets Commission (FMC), said, “The ban on wheat has been lifted, and now the exchanges need to bring their contracts for the commission’s approval.”

The decision to lift ban has been reportedly taken by the Consumer Affairs Minister Sharad Pawar last month but the formal announcement could not made due to election code of conduct.

The government had also banned futures trading in tur and urad in January 2007 to control price rising in the country. However, the ban has not been lifted yet on these commodities.