Ban on Futures Trading in Rice and Urad: the Road Ahead

Ban on Futures Trading in Rice and Urad: The highroad Ahead Battle Grounds of Futures Trade Banning The list of banned commodities for futures trading is get bigger twenty-four hour period by day because of the present hot political issue Inflation. The left over(p) allies and some of the NGOs said the inflation was caused by the futures traders and attach some campaigns against the government. So the government banned tur and urad futures in the determination week of January 2007 expecting a damage fall in these commodities. once more on the eve of the Budget, the Congress was routed in the Assembly canvass in Punjab and Uttarakhand. Thus on 28th February 2007 in appurtenance to his prepared Budget speech, the Finance Minister announced the governings decision to take wheat and paddy out of the futures market. and unlike last time when it banned the futures at unmatched shot, creating difficulties for traders, the government took a more practical step by opting a gradual phase-out. The existing contracts will expire on maturity and positions will be allowed to be squared off. If every position remains after that, these will be interpreted care of at the price on the day of settlement.

stopping point year, the entry of private traders created a competition and helped the farmers in getting a price advantage of about Rs 100 higher up the procurement price per quintal. This private traders entry has not unnatural the the countrys overall stock position at all. But in June 2006 there was a gossip among the lucre traders that there is a possibility of India importing around 10 lakhs tonnes of wheat. Where as the Agriculture Minister strongly told that there would be any need for wheat imports that year. At last, the Government merchandise about 30 lakh tonnes of wheat, at a price much higher than the domestic price. Then the Government confirm that the imports would be unloaded and used in South India quite of transporting from North to south India. But some analysts said that the apology had been after the... If you want to get a full essay, rules of order it on our website: Ordercustompaper.com

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