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Forward trading responsible for price rise: Mukhi

Written by: Staff

New Delhi, July 4 (UNI) Alleging that the UPA Government was ''playing into the hands'' of MNCs, Leader of the opposition in the Delhi Assembly Jagdish Mukhi today said forward trading was responsible for spiralling prices of essential commodities and urged Prime Minister Manmohan Singh to withdraw cereals and pulses from the list.

''Some big companies like Atul Adani, Cargil, Reliance and ITC.

who are managing the forward trading in the country, are taking full advantage of the artificially created fluctuations in the market prices,'' Prof Mukhi said.

He said it is because of forward trading that there are fluctuations of Rs 150 to Rs 200 per quintal in one day in the market prices of serials and pulses.

''The real trade in the market has collapsed. Prices of cereals and pulses are rising at such an exorbitant rate that it has made the life of common man miserable and rather impossible,'' he added.

Prof Mukhi alleged that the UPA Government is responsible for the unprecedented price rise of cereals and the pulses as they were put in the list of forward trade in the months from April, 2004 to July, 2004 by the UPA Government.

The UPA Government had announced that the move will facilitate to provide fair prices to the farmers for their produce, he added.

Prof Mukhi claimed that the companies organizing forward trade have never even purchased 1000 bags from the farmers to provide fair price for their produce.

''Contrary to this the companies have been announcing forward rates only to benefit them. It is the farmer who is ultimately loses and he does not get proper price for his produce because of these companies alone,'' he added.

''It is apparent that the Multi National Companies have gained worth thousand crores of rupees by creating artificial scarcities.

It proves that the claim of the UPA Government that forward trading in cereals and pulses shall fetch better price to the farmers for their produce, is totally false,'' the Leader of the Opposition said.

Prof Mukhi said because of the peculiar forward trade, farmers may have to sell their produce at the rates with difference of Rs 150 to Rs 200 per quintal on the same day.

''On the whole it is the few big companies, which gain out of forward trade,'' he added.


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