Traders, middlemen lobby oppose Future Trading: FMC

Bangalore, Feb 7 (UNI) Forward Markets Commission (FMC) Chairman S Sundareshan today accused the traders and middlemen lobby of opposing Future Trading and misleading the growers.

''FMC was formed to maintain financial integrity, market integrity and ensure consumer protection, but traders and middlemen want to continue with full holding and were giving wrong publicity over functioning of the Commission, he said, addressing members of the Federation of Karnataka Chamber of Commerce and Industry here.

Citing an example, Mr Sundareshan said that due to protest from these lobbies, Tur dal trading was stopped by FMC, but the prices in the open market had neither come down nor the grower was getting more. The Commission continued to be blamed for increase in prices in the market.

He said that though the reform process had begun in 1990, it was in 2003 that commodities trading was opened in the country. ''India was the first country to embrace future trading.'' Stating that Future Trading was still in the nascent stage in the country, Mr Sundareshan said steps have been taken to upgrade 21 Regional Exchanges and spread its wings to the nook and corner of the country. ''FMC is working with the State Governments to have link with Agriculture Produce Marketing Committees and Taluk traders.'' He said the Power Market Commission might come into existence, with Parliament likely to pass the Bill in the Budget session. As per the Bill, trading in bullion, mutual funds and foreign direct investment have been included. However, there would be no FDI for trading in agriculture commodities, he clarified.

UNI