Mumbai, Apr 22 (UNI) Nowhere in the world are commodity markets taxed as in India, and reduction or total removal of taxes will help the nascent market grow and prevent operators and speculators from entering the grey market, Forward Market Commission (FMC) Chairman B C Khatau said here today.
Welcoming the government's plan to reduce the Commodities Transaction Tax (CTT), Mr Khatau said that the commodity markets were not lagging behind other global markets, but low participation by banks and financial institutions due to hazy regulatory environment and ideologised opposition by sections have stalled its growth.
Lack of awareness and knowledge about the market among corporates and stakeholders, compounded by shortage of trained personnel for the exchanges and brokering firms, had also played spoilsport to the growth of the market, he pointed out.
''The market needs freedom of operation and pricing along with active participation of financial institutes and corporates. But the time for commodity markets has arrived, and it would be difficult to stop it,'' Mr Khatau said.
Speaking at Energy Derivatives and Emission Trading conference organised by the Confederation of Indian Industries (CII), Mr Khatau also said that climatic factors offered good opportunities for a liquid derivative market and could provide a good platform and a strong instrument for price list management for hedgers and bring in efficiency and reduce price volatility in the energy derivatives and emission trading sectors.
''India is on a threshold of taking off, but needs to develop in a globally responsible way, or we will end-up like a lot of the Western countries. We must work towards a sustainable global environment, as we have no right to pollute the earth and leave future generations to clean it,'' he added.
UNI ZC GR AG1659