USAID to invest $3mn in commodity market prog

New Delhi, Oct 13: In an effort to develop institutional infrastructure for an efficient commodity futures market in India, the United States Agency for International Development (USAID) and the market regulator Forward Markets Commission (FMC) today launched a Rs 4.5 crore Commodity Futures Market programme.

The programme will be carried on for three years on a year-on-year basis with a total investment of 3 million dollars.

The project will assist the FMC, Department of Consumer Affairs and leading Indian exchanges in developing the legal, policy, regulatory and operational environment neccessary for promoting a vibrant and safe commodity futures market in India.

''Drawing on our experience, the US wants to help India improve futures markets support India's 120 million farming households,'' USAID India Mission India Director Beth Hogan told reporters here.

Secretary, Department of Consumer Affairs, L Mansingh said that an effective commodity futures market can help farmers to guide planting decisions and manage the risks of market fluctuations.

The programme will promote vibrant and safe commodity futures markets by making the farm products market more transparent and available to Indian farmers.

The Forward Markets Commission will lead the work on regulatory issues for the market place.

USAID support will be used for technical assistance from Financial Markets International (FMI) and the US Commodity Futures Trading Commission.

UNI