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Government is working on improving regulatory framework for working of spot exchanges in the country. K V Thomas, Union Minister of consumer affairs today said that, “we are considering new regulations under which spot exchanges are functions.”
While addressing media today here after an even of commodity market participants Minister sad that they had received suggestions from the commodity market regulator, FMC regarding regulating spot exchanges which are under consideration and new law will be brought in after consulting the FMC, spot exchanges and other stake holders.
Minister’s remarks are important as recently government had asked premier spot exchange the NSEL not to launch fresh contracts. Minister however did not elaborate on details of regulations but said that in the present policy governing spot exchanges there are lacuna which will be addressed soon.
While addressing the concerns of some states regarding fall in supply of food grans after implementing the Food security law, minister sad that, “we will take care of the issue.” Maharashtra, Kerala, Tamilnadu have represented to the government that their allocations will come down after implementing the new law.
Minister also said that this year wheat export from central pool has been targeted at 5 million tons and exports from private trade could be even higher than this. Realizations from export has increased, according to him earlier Indian quality wheat was fetching $228 per tons which now sold at $300 and above. He also sad that wheat procurement this season was lower at 25 million tons against 34 million tons last year.
