(a) whether telecast of multi-commodity exchange prices of food items on television
channels has led to rise in their prices;
(b) if so, the details thereof;
(c) whether telecast of the said information on television channels promotes
speculation in
forward trading in commodity futures markets;
(d) if so, the details thereof; and
(e) the steps taken/proposed to be taken to stop telecasting of multi-commodity exchange prices of food items in order to control price rise?
THE MINISTER OF STATE (INDEPENDENT CHARGE)
FOR CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
(PROF. K. V. THOMAS)
(a)to(d): No, Madam. Futures trading is a mechanism for price risk management and price
discovery and does not contribute to price rise. The Multi Commodity Exchanges
disseminate
the data on futures prices of commodities that are discovered on its platform through a
transparent online mechanism based on anticipated demand and supply conditions, through
various means including television channels.
(e) : There is no proposal under the consideration of the Forward Market Commission
(FMC), the Regulator for commodity futures markets under the provisions of the Forward
Contracts (Regulation) Act, 1952 to ban the telecast of futures prices on news channels.
Wide
dissemination of futures prices which have already been discovered on the Exchange
platform
promotes awareness among the various stakeholders of the market and help their take
informed
decisions.