Decade-long ban on Urad, Tur futures may be lifted

The Securities and Exchange Board of India (SEBI) is considering lifting a decade-long ban on the futures trading of urad and tur dals. According to sources, the Ministry of Finance has also given the green signal.  Finance Minister had previously informed that 91 commodities, including urad and tur dals on which exchanges can launch commodity for trading after SEBI’s approval.

The National Commodity & Derivatives Exchange Limited (NCDEX) has also sought SEBI’s nod for re-starting futures trading in urad and tur. It must be noted that government had banned futures trading in commodities like urad, tur, rice and wheat in the wake of price rise in essential food items, leading to inflation. At present, these commodities are trading below the minimum support price (MSP). Moreover the market experts are also in favor of the ban being annulled.

Vijay Sardana, member of SEBI’s committee commodity derivative advisory committee said “If SEBI permits future trading in urad and tur, it may ease cartelization in pulses. Big players will also show interest and derivative is a good tool for price discovery”.

Atul Chaturvedi, former Chief Executive Officer, Adani Wilmar stressed that “There is need of future trading in pulses for proper price discovery and currently these commodities are in price pressure”.