Board rejects spices ban plea

Spices Board has turned down a demand by spices traders in Vashi-based Agriculture Produce Market Committee for immediate ban on futures of cumin seed, turmeric, chilli, cardamom, sesame seed and black pepper.

Representatives of Navi Mumbai spices traders alleged that the purpose of futures trading was not being served as it was controlled by a handful of traders who had a role in artificially hiking the prices of certain commodities.

Spices Board Chairman V J Kurian, however, said, "I have asked the traders and the representatives of Indian Spice & Foodstuff Exporters' Association several times to specify their problem areas, but they have not come out with that. They simply say the volume of the trade is much higher than the country's total output. In fact, the size of commodity trade in India is double its GDP. So, simply saying the size of trade is much higher than the output does not serve the purpose."

Futures trade in the country was the outcome of several years of sincere efforts "� and eventually it was the government which took the decision, he said. "Then, what exactly are their problems?" Kurian said.

On other hand, Yogesh Mehta of Spicexim, an indenting agent representing 13 companies from the US and the EU for spices exports from India, in a letter, said India was not a preferred destination for spices "� and had been only an optional one. The letter also questioned the authenticity of data available in or sourced from other countries.

"However," a trader said, "we depend upon international publications and research agencies for the authenticity of data as they are referred to by even our government bodies".

Kurian said, "Intermediaries have been isolated from future exchanges. So, they are clamouring as they lost the business stream. Hence, there is no question of suggesting the government to ban futures on spices. If anyone has any problem, let him come to us."

Both commodity exchanges and the government claim that futures trade in the country is meant for price discovery, and that farmers are benefiting a lot from it.