October 12, 2008

Indian may ban futures trading and bring steel under ESMA

Warning that the battle against inflation will fail if states do not join hands with the centre, Mr Kamal Nath union minister of commerce & industry said that the fresh offensive on price control may include a ban on forward trading and bringing steel under ESMA.

Mr Nath said that "If the states are not going to exercise the power they have to check profiteering, hoarding, fight against inflation is going to collapse." He added that the centre needs to prevail more strongly on the states to take effective steps for arresting the price rise.

Asked whether the government would ban futures trading, Mr Nath replied that "If forward trading is the reason of inflation, why would not we do it. We want to contain inflation."

As for steel, which has seen a price rise of 49% in the last one year, Mr Nath said that if the states failed to rein in inflation, the centre was prepared to take stern action. He added that "In the end we will have to think of steps. You know there are steps such as the Essential Commodities Act for steel such as 18 (G) of the Industrial Development Regulation Act."