Addressing a press conference on Friday Gidwani alleged that forward trading in sugar had neither helped the cane farmers get a better price nor had it eased out the excess sugar stock in the mills.
"Futures trading in sugar is almost like legalised gambling. The players are not the farmers or the millers but people who are making money by indulging in forward trading," Mr Gidwani said.
He pointed out that in a state like Maharashtra which had the highest share in national sugar production, a majority of cane farmers had not even been paid the statutory minimum price also. "And futures trading has not helped the consumers either as there has not been any let up in the retail price of sugar," he said.
Replying to a question Gidwani expressed his surprise that committee under planning commission member Abhijit Sena remained neutral and couldn't establish any link between retail prices and futures trading.
"The panel was formed one and half year back with the mandate to study the impact of futures trading on prices. It should have come out with its study within three months. But the panel did not submit its report for more than one year. It came out with the report only when the government specifically asked for it. But at the end of the day, the panel has said virtually nothing on the issue," he said.
