Finance ministry late Wednesday banned futures trading in chana, soya complex, rubber and potato to check inflation

Staff Reporter | 09 May, 2008
The government has banned futures trading in four commodities to tame inflation, but a member of an official expert panel has questioned the move, saying it would only hurt farmers.

The finance ministry late Wednesday banned futures trading in chana, soya complex, rubber and potato to check the rising prices of food grain and other essential commodities.

A day later, Sharad Joshi, a farmers' leader and member of the government's Expert Committee of Futures Market, termed it as an "unfortunate move".

"The committee has made it clear that the forward markets have nothing to with inflation. It is a surprising move," Joshi told IANS by telephone from Mumbai.

"Futures trading in in fact helping farmers get better prices for their produce. The ban will affect the farmers," he said.

"I hope, in the interest of farmers, the government will reconsider the decision."

India's annual rate of inflation has been hovering well over seven percent in recent weeks, putting the government under pressure.