Commodity futures report to be delayed

The commodity futures panel may take at least one more month to submit its much-awaited report to the government on the impact of futures trade on the prices of essential commodities, a member of the panel said today.

The five-member panel, under the chairmanship of Abhijit Sen, member, Planning Commission, was expected to submit its report by end of the current month.

"The members of the panel are likely to meet after the Diwali festival to discuss the draft proposals," Sharad Joshi, a member of the panel said.

It will take some more time as the members need to go through 500 pages of the draft report to prepare a 50-page final report, Joshi said.

The govt had set up the panel in February to study the impact of futures trade on essential food items, and to suggest measures to enable farmers to avail the benefits accruing out of trading in futures.

Joshi said there was a consensus among members of the panel that futures trade did not contribute to rise in the prices of essential commodities.

"Demand and supply are the only factors that affected the prices of essential commodities, whether in spot or futures market," Joshi said.

Joshi also said he was strongly in favour of futures trade in farm commodities.

"I have recommended introduction of options trade and foreign direct investment as well in commodity exchanges," Joshi said.

However, not all the members of the panel were in favour of futures trade in farm commodities in its present form.

Joshi categorically denied that the panel had suggested re-listing of tur, urad, wheat, and rice futures on the commodity exchanges.

"The decision to re-list these contracts, if any, will be taken by the Forward Markets Commission and will be independent of the panel's report," he said.