Futures trading not responsible for food grains price hike: FMC

Ranchi, Nov 25 (UNI) Forward Market Commission Director Bharat Tripathi has dismissed any apprehension about commodity futures market in India asserting that there is no relation between price hike of food grains and futures trading.

Mr Tripathi, who was here to participate in an awarness programme organised by National Commodities and Derivatives Exchage Limited (NCDEX) last night told reporters here that ''there was 'misconception' about futures trading and it should not be mixed with the price hike of food grains.'' To justiy his claim, Mr Tripathy referred to price hike in wheat.

The price of wheat increased throughout the country but a meagre one per cent of the total wheat production was attached with the future trading, he said.

The Commodity Futures Market, which witnessed remarkable growth in the past two years, he said has helped farmers, traders and businessmen to get profit.

''Hope of getting proper rates to the farmers was maximum and they had the option of choosing profit-oriented crops, ''he said.

He said traders also had the option to control the rate of raw materials.

He said in last fiscal business of about Rs 18 lakh crore was done through 21 regional commodities exchanges adding business of about Rs 18 lakh crore was done till September this year.

He said the rates of food grains were being displayed by electronic ticket line in Gujrat and Maharashtra adding chief ministers and chief secretaries of other states had been requested to make similar arrangements in their states.

UNI AM-PRS-JYN-AKP1316