News last update:6 Aug 2012

India may ban maize futures

Maize futures in India may fall prey to the rising inflation with the government considering banning maize futures. The government may also ban export of some more agricultural commodities, including maize, to curb price rise.

Even though maize was not a major item on the wholesale price index (WPI), a ban on its exports is needed due to the steep increase in its price. Maize is primarily used as poultry feed. It is not a major item in WPI, but the poultry industry is hit hard due to the rise in its price.

According to officials, the department of consumer affairs has recommended a ban on futures trading and export of maize because of a steep rise in its price. The issue will be reviewed next week and a decision will come out by then.

There would, however, be no ban on oilseeds futures trading as not much of a price rise in oilseeds has been witnessed. According to officials, the government will ban futures trading and exports of items where it sees price increases much beyond the normal levels because of speculation.

In view of the rising prices, the government had already banned futures trading in items such as rice, wheat, and pulses pigeon peas and black gram (a type of lentil). It had also imposed a four-month ban on futures trading in potato, chana (chick peas), soy oil and rubber as a precautionary move to check price rise and control inflation.

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