Panel on futures trading seeks more time

The Abhijit Sen Committee set up to study the impact of futures trading on wholesale and retail prices of agricultural commodities is seeking a third extension from the government to complete the report.

The revised deadline for submitting the report was August 2 against an earlier deadline of July 2 and the original deadline of May 2. The committee was set up on March 2 to examine whether and to what extent futures trading had contributed to price rise in agricultural commodities in recent times. It was set up under pressure from the Left parties when inflation was ruling above 5 per cent.

"We have prepared the draft of the report. It has to be circulated among the members of the committee. After receiving their views on the draft, the committee will meet and take a final view on the matter," an official said.

No fresh deadline has been set yet, though an official says it is targeting August-end.

Without discussing the details of the draft, he said the recommendations were "unlikely to be in black and white", suggesting that there might be dissensions within the committee.

Planning Commission member Abhijit Sen chairs the committee. Other members include Rajya Sabha member Sharad Joshi, Forward Markets Commission member Kewal Ram, Prakash Apte of IIM-Bangalore and Siddharth Sinha of IIM-Ahmedabad.

The Forward Markets Commission, the regulator for commodity futures trading, has banned futures trading of urad and tur since January 23, 2007, by directing the three national bourses.