Commodity market regulator Forward Markets Commission (FMC) today said it is in no hurry to lift the ban on futures trading in sugar despite a sharp fall in retail prices of the sweetener.
"As of now, we have not thought about it (lifting ban on sugar futures). Let the sugar production situation improve," FMC Chairman B C Khatua told PTI.
The government had banned sugar futures for seven months in May 2009 in the wake of a steep rise in prices due to lower availability. Later, the ban was extended till September 2010.
"Any decision on resuming trade on sugar futures will be taken after we see the correct picture of the estimated sugar output in the current year (ending September)," Khatua said.
Recently, FMC had said there was no nexus between retail prices and the futures market.
"Though there is no proof that the futures market is driving the spot prices, many including the political class, hold an erroneous view," Khatua had said.
At present, the country's sugar production outlook for the 2009-10 crop year has improved from 16 million tonnes to 18 million tonnes.
Sugar prices, which nearly touched Rs 50 a kg in January this year, declined to Rs 35 a kg in the retail market in the national capital.
