On Amending Forward Contract Regulation Act

Friday, January 25, 2008

Press Statement

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

CPI (M) Opposes Ordinance to Amend

Forward Contract Regulation Act

The Union Cabinet has decided to issue an ordinance to amend the Forward Contract Regulation Act. The proposed changes include allowing foreign participants and intermediaries to participate in the commodity futures market. The Parliamentary Standing Committee on Food, Consumer Affairs and Public Distribution had recommended that foreign participants and intermediaries need not be allowed in commodity markets. The Standing Committee had further recommended that agricultural commodities, especially foodgrains, pulses and sugar should not be traded in the futures market.

The CPI (M) is opposed to an ordinance amending the Forward Contract Regulation Act. The Government should accept the recommendations made by the Standing Committee and bring the Bill in the forthcoming budget session of Parliament.