Stop futures trading in food grains, CITU tells Centre

Bangalore, Jan 18 (UNI) The Centre of Indian Trade Unions (CITU) today urged the Union Government to stop forward and futures trading in food grains and essential commodities to strengthen the Public Distribution System, and restructure the taxes of petroleum products, which had a cascading effect on price rise.

Passing a resolution to this effect at the 12th All India CITU Conference underway here, it said common people were experiencing a continuing trend of rise in prices of essential commodities, particularly food grains and food articles, during the past several months, causing them tremendous hardship. The prices of pulses have risen by 33 per cent between January and November last year, it pointed out.

The price rise could be checked if there were curbs on forward and futures trading in essential commodities and entry of private players in grains trade was banned, it said, adding that the dismantling of the PDS during the previous NDA regime had further aggravated the crisis.

The annual rate of inflation on the wholesale price index (WPI) stood at 5.30 per cent for the week ended November 25, 2006, compared to 4.48 per cent an year ago, it noted.

CITU termed as ''totally insignificant'' the reduction in prices of petrol and diesel by Rs two and Re one per litre respectively.

UNI