Post by Queue on Dec 4, 2011 21:25:00 GMT -5
Commodity futures exchanges and market participants are clamouring for introduction of ‘options' trading in commodities, in addition to futures, and the policymakers seem to be going along, unaware of ground realities. The government has, perhaps, been led to believe that introduction of ‘options in goods' will benefit farmers.
Do farmers need ‘options' trading? This question is being debated in the context of proposed amendments to the Forward Contracts (Regulation) Act, 1952, (FCRA). The Amendment Bill was introduced in the Lok Sabha almost a year ago, and is currently being examined by the Parliamentary Standing Committee for the Department of Consumer Affairs.