The Working Group on Consumer Affairs, set up by Prime Minister Manmohan Singh, is likely to recommend delisting all essential commodities from futures trading in order to control inflation.
The group, which met here for the first time, also decided to focus on improving the agricultural infrastructure and protecting interests of farmers and consumers alike.
The working group, headed by Gujarat Chief Minister Narendra Modi, was formed in April to suggest ways to control prices. Andhra Pradesh, Tamil Nadu and Maharashtra Chief Ministers are the members of this group.
"There is a general view that futures market is good as it helps in price discovery. But it may not be appropriate for us to include the essential commodities like rise, pulses, edible oil at this stage as these commodities are facing volatile price changes due to uncertainty on supply side," Tamil Nadu Deputy Chief Minister M K Stalin said in his speech.
Stalin said the working group may recommend that these commodities should continue to be delisted from futures trade.
At present, there is a ban in futures trade of rice, tur and arhar but it is allowed in wheat, edible oil and oilseeds among other essential commodities.
Meanwhile, food inflation eased by nearly a percentage point to 15.53 per cent as of October 9 as vegetable prices softened, government data showed. Food inflation was at 16.37 per cent in the previous week.
Briefing the media after the meeting, Gujarat CM Modi said: "Today we discussed over 55 different issues. The stress was given on the agricultural infrastructure...In all systems, the focus was given on protecting the interest of consumers and farmers".
Modi said the members gave their views on different issues involved and based on that a final draft would be prepared.
"Soon, we will submit a report to the Prime Minister," he said, and declined to give further details.
The Andhra Pradesh representative said various issues were discussed, including strengthening the Essential Commodities Act and banning futures trade of essential commodities.
The interest of farmers and consumers can be protected by eliminating intermediaries, he said.
Asked about delay in holding the first meeting of the working group, Modi said the group was preparing ground work.
"Committee members formed a team to visit the four member states. They prepared a detailed report on issues to be discussed in the meeting. We have done a detailed homework for the project. After that, we prepared a note on agenda, which was circulated to all the states," he added.
After taking the comments from states, Modi said the meeting was held today and it was based on the grass-root level information gathered.
