Swaminathan backs Centre's decision to suspend futures trading

Kochi, May 9 (UNI) Throwing his weight behind the Centre's decision to suspend futures trading in four commodities till September 6, noted Agriculture Scientist M S Swaminathan today said the move would help to discourage speculative holding of commodities and control unwarranted price rise.

''The Government was trying to curb the inflationary trend and this decision would naturally prevent speculative holding and control the spiralling price rise of commodities,'' Dr Swaminathan told reporters on the sidelines of an International Conference on Natural Rubber Extension and Development here today.

Asked whether futures trading had affected the farmers, Dr Swaminthan said ''according to the Abhijit Sen Committee report the futures trading had not affected the farmers favourably or unfavourably.'' He said futures trading would benefit farmers, especially small farmers, only when there was adequate infrastructure in terms of developing warehousing facilities.

''More than 80 per cent of the farmers don't have any holding capacity and they are forced to sell their produce at the current price,'' he noted.

Recently, the Centre had decided to suspend futures trading in Chana (gram), soyabean oil, rubber and potato till September 6 in a bid to tame the price rise.

UNI MA SJ NY HS1928