COMMODITY FUTURES TRADING LAUNCHED IN
J&K
Commodity Futures
Trading facilities have been extended to Jammu and Kashmir as
part of a major initiative of the Government of India in encouraging
futures trading in commodities. This was inaugurated by Shri Muzaffar
Hussain Beig, J&K Minister of Finance, Planning and Development
at a function organised by the Ahmedabad based National Multi-Commodity
Exchange of India at Srinagar today. The on-line trading connectivity
is being provided by the National Multi-Commodity Exchange of
India Ahmedabad, the nationwide Multi-Commodity Exchange through
their brokers. The function was attended by Shri Taj Mohi-ud-Din,
J&K Minister for Consumer Affairs and Civil Supplies, Shri
Wajahat Habibullah, Secretary to Government of India, Department
of Consumer Affairs which is the apex policy department for commodity
futures trading in the country, officers from the central and
state governments, National Multi-Commodity Exchange and its promoter,
the Central Warehousing Corporation.
Government of India
has been taking several initiatives in promoting and encouraging
commodity futures trading in the country in the recent past. Prohibition
in futures trading in a large number of commodities have been
removed already permitting all commodities for futures trading.
Approval was given to four nation-wide multi commodity exchanges
to carry on futures trading operations and restrictions on party
to party contracts under Forward Contracts (Regulation) Act has
been removed. Several initiatives such as MOU based approach have
been taken in encouraging existing exchanges to adopt reforms
and modern practices. The Government is now encouraging extension
of trading initiatives to all parts of the country.
The Forward Contract
(Regulation) Act, 1952 was extended to the State of Jammu and
Kashmir with effect from 28th December, 1960. Though
the State of J&K is a commodity deficit State it has considerable
production base in a number of unique products such as fruits,
certain varieties of basmati rice, wheat, maze, saffron, walnut
and so on. Moreover, it is not necessary that futures trading
benefits only in case of a substantive production base; it also
helps other stake holders and participants in market such as traders,
stockists, exporters, importers etc.
The National Multi
Commodity Exchange of India, which is currently providing futures
trading facilities in 47 commodities, is also studying the commodity
base of Jammu and Kashmir with the objective of commencing contracts
in some of them. Moreover, the Exchange proposes to provide trading
connectivity to other cities and towns in J&K as well with
connectivity already tied up in Jammu. Similarly, it is possible
that once the potential of the J&K is revealed in futures
trading other exchanges may also commence their operations from
the State which has a history of informal trading, particularly
in fruits, for quite some time now.
