MUMBAI: The Bombay Sugar Merchants Association, has urged the Forward Markets Commission (FMC) to impose a ban on sugar futures following what it termed speculative activity on commexes leading to a jump in sugar prices by Rs 400 per quintal. At a meeting of the FMC on Wednesday at Bangalore, the association submitted a memorandum on the issue. Presently, three major exchanges, the National Commodity and Derivatives Exchange (NCDEX), Multi-Commodity Exchange of India (MCX) and National Multi-Commodity Exchange (NMCE) are conducting substantial futures trading in sugar. The association said that none of the objectives such as price discovery, hedge and arbitrage facilities and farmers guidance were being fulfilled by these operations. “Let us accept the fact that no sugarcane farmer anywhere in India has ever understood the goings-on in these exchanges leave alone trying to plan his strategy for sugarcane plantations on the basis of prices prevalent on these exchanges,” association chairman, Mohan Gurnani, said in a statement here. On the contrary, futures exchanges have become a den for speculators, who have entered this business for making a fast buck, he said. The recent price hike of Rs 400 per quintal (nearly 30% of total value) in the spot market price of sugar during the last 30 days is a classic example of how consumer interest is hurt by activities of speculators in sugar futures exchanges, Mr Gurnani said. Sugar prices, which were ranging around Rs 1,500 per quintal in the wholesale market at Mumbai have gone up to Rs 1,900-1,950 within a short period of 30 days. Mr Gurnani pointed out that the price hike has occurred although there is no short supply or any exceptional demand for sugar in the physical market. “We have sufficient stock in the country than can carry us up to June 2009. Moreover, the new sugar season will be starting from October,” he said. In spite of this comfortable position prices have gone up in an unprecedented manner and upset the government’s plan to contain the inflationary trends in the economy, he said. (The Economic Times)
सदस्यता लें
टिप्पणियाँ भेजें (Atom)
कोई टिप्पणी नहीं:
एक टिप्पणी भेजें