Forward trading in sugar not a good move: Gidwani

Mumbai, July 7: President of the Coordination Commitee of Consumer Protection, Market, Industry and Commerce Department of the Maharshtra Pradesh Congress Committee, Mr Kanhaiyalal Gidwani today said the inclusion of sugar in forward trading, which was done to obtain better prices for the cane farmers, has not yielded desired results.

In a statement issued here today, Mr Gidwani said on the flip side the move had only resulted in the further plight of the cane farmers.

Mr Gidwani alleged the situation has worsened further with the National Commodity and Derivatives Exchange (NCDEX) increasing its delivery centres to 13 from three, which has brought down the sugar prices, and consequently completely destroying the market and the cane famers.

''The inclusion of sugar in the forward trading is proving to be one of the prime cause for the current pathetic situation of the cane farmer and the sugar industry,'' Mr Gidwani said.

Earlier, there were three delivery centres at New Delhi, Muzaffar Nagar (Uttar Pradesh) and Kolkata. However, the NCDEX later set up 10 more centres at Ahmedabad, Belgaum, Erod (Kerala), Indore, Kanpur, Jaipur, Kolhapur, Vijyawada and Vizag.

''The opening of these centres have got the prices of sugar down to an unrealistic prices in the forward trading market, completely destroying the pricing sentiments of the market.

Therefore, to benefit the sugarcane farmers and the industry, they should revert back to three original centres, and if at all they want to set up an additional centre, they can open it in Guwahati,'' Mr Gidwani added.

According to him, NCDEX July rate per quintal was trading at Rs 1300 for grade M30, while Kolkata wholesale market rate are prevailing at Rs 1575 per quintal and in Asom, wholesale rate are prevailing at Rs 1635 per quintal.

Mr Gidwani also said he has apprised all these facts to the chairman of the Forward Market Commission, and added that if the additonal centres were not closed, the sugarcane farmers and the sugar industry will find it difficult to survive.

''In this regard, the Chairman has called for a report from the MCDEX and Multicommodity Exchange (MCX) to get an appraisal on the prevailing situation,'' he said.

He also said prompt action in this regard would ensure to respite to the sugarcane farmers as prices will get steady, resulting in a gain to the farmers, who are currently unable to obtain his rightfull price or even the statutory Minimum Price (SMP) as fixed by the Union Government.

UNI