Futures trading in 4 commodities may start soon

Futures trading in 4 commodities may start soonDoors are likely to be opened for the futures trading of four agriculture commodities on Sunday as the ban is lapsed on November 30 after period of at least six months. However, government has not issued any notification for futures trading in rubber, potato, chickpea and soya oil.

Futures trading is expected to start in a short time after the necessary notification by commodity markets regulator Forward Markets Commission (FMC).

Earlier, union government had banned futures trading of these four agricultural products for four months, in order to control the politically sensitive inflation rate. The suspension was further increased after September 30, as price rise was all time high at that time.

A commodity analyst in a Mumbai-based brokerage firm said that the government has no reason to suspend the futures trading, as inflation rate is in comfortable zone and there is a possibility of normal kharif crop production. In addition to this, prices of four agricultural products also declined significantly in line with the drop of prices in the international market.

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