Decision on new comex in 2-3 weeks

The government is likely to decide on setting up the fourth national commodity futures exchange in two to three weeks, Consumer Affairs Secretary Yashwant Bhave said today.

The Forward Markets Commission has received the application for setting up the new exchange, he said.

"FMC will review the application, and send it to us. We will then decide on what is to be done," Bhave told reporters on the sidelines of the Economic Editors' Conference here.

Last month, state-run MMTC and IndiaBulls Financial Services announced their intention to jointly set up India's fourth commodity exchange. Currently, there are three national commodity bourses "" National Commodity and Derivatives Exchange, MCX and National Multi-Commodity Exchange.

Asked about the viability of a new exchange in the backdrop of declining volumes in farm goods futures, he said: "We have to see which commodities the proposed entity wants to trade in."

Volumes in India's commodity futures trade have been declining as futures trading in wheat and rice were banned early this year, in an attempt to ease supplies and tame prices.

On whether foreign direct investment would be allowed in commodity bourses, Bhave said the decision would be taken by the commerce ministry.

Separately, at the same event, Agriculture Minister Sharad Pawar said the ban on rice and wheat futures would be reviewed after the committee of experts, chaired by Abhijit Sen, submits its report.

"The report is likely to be submitted this month," the minister said. Earlier this year, the government had set up the panel headed by Sen, member, Planning Commission, to study the impact of futures trade on commodity prices.