CPI(M) opposes allowing foreign funds in commodity futures

New Delhi, Jan 25 (UNI) The Communist Party of India (Marxist), an ally of the ruling UPA, today opposed allowing of foreign funds in the country's commodity future market.

The party said it has ultrawired a Parliamentary Standing Committee observations which has taken an unambiguous position not only against the future trading in agricultural commodities, but also against the participation of foreign financial institutuions (FIIs) and their intermediaries in it.

Yestersday, the Union Cabinent issued an ordinance to amend the Forward Contract Regulation Act to allow foreign funds and intermediaries to participate in the commodity futures market.

Instead of allowing FIIs in the commodity futures, the government should accept the recommendations made by the Standing Commitee on the Ministry of Food, Consumer Affairs and Public Distribution which had categorically laid down that there should be no future trading in agricultural commodities, especially in foodgrains, pulses and sugar, said the CPI(M) Poltiburo.

On the recommendations of Standing Committee, the government should bring a bill in the forthcoming Budget session to put a seal on the issue, the party said in a statement here.

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