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The Ministry of Consumer Affairs, Food and Public Distribution proposes to introduce a Bill in Parliament on Warehouse Development and Regulation. The Ministry is also considering various aspects pertaining to standardization and gradation, negotiability of warehouse receipts and development of modern warehousing infrastructure all over the country. The ministry has also taken up with the Reserve Bank of India on participation of Banks and FIIs in commodity futures market. This was stated here today by Shri Sharad Pawar, Minister of Agriculture, Consumer Affairs, Food and Public Distribution while inaugurating a conference on Commodity Futures Markets in India organized by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The Minister emphasised the need for creating awareness among small and marginal farmers to take advantage of the benefits of futures trading for price discovery and risk management. Enumerating the steps taken by his ministry in the recent past to strengthen and restructure Forward Markets Commission (FMC) the regulator of Futures Trading in commodities, the Minister said the Forward Contracts (Regulation) Act, 1952 was proposed to be amended with a view to make statutory provisions in tune with liberalization. It is also proposed to set up a Forward Markets Appellate Tribunal in line with the Security Appellate Tribunal (SAT). The efforts of the Ministry is to integrate the efforts of all stakeholders, the government including the regulator, the commodity exchanges and their members, the ancillary institutions such as warehouses etc. for further promoting futures trading the Minister said.
The Minister expressed satisfaction on the unprecedented growth in commodities derivatives trade. During 2004-05 the total value of commodity futures trade touched Rs. 5.71 lakh crore as compared to Rs. 1.29 lakh crore during 2003-04. This marked an increase of 341 % in 2004-05 as against an increase of 94% in 2003-04. The commodity derivatives trade value for the year 2004-05 is about 20% of GDP at the current prices.
Later, speaking to media persons, the Minister said several steps were being taken to improve the condition of farmers in country. This include strengthening of food processing sector by encouraging private entrepreneurship, amendments to Agricultural Produce Marketing Committee (APMC) Act and withdrawal of monopoly of marketing committees etc. So far, 16 States have amended the APMC Act and more states are taking steps in this regard, Shri Pawar Said.
The Ministry of Agriculture was reviewing the progress of monsoon and sowing and the early indications showed that this would be one of best years for agricultural production. He ruled out the import of wheat as there was enough stock of foodgrains in the central pool.
The Minister also inaugurated Gold Weekly Delivery Contract by Multi-Commodity Exchange (MCX) on the occasion.
SBK:CP:commodity14.7
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