By IANS
New Delhi : A day after the union cabinet approved an ordinance to give more powers to the Forward Markets Commission (FMC) that regulates trading of commodities in the country, the Communist Party of India-Marxist (CPI-M) has strongly opposed the move.
“The government should accept the recommendations made by the standing committee and bring the bill in the forthcoming budget session of Parliament,” a statement issued by the party’s politburo said.
“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 statement added.
A meeting of the union cabinet, presided over by Prime Minister Manmohan Singh Thursday, decided to promulgate an ordinance to amend the Forwards Contracts (Regulation) Act, 1952, to arm the commission with more powers.
“The ordinance proposes to strengthen legal and regulatory framework in respect of the commission regulating commodities marketing and grant greater autonomy,” Information and Broadcasting Minister Priyaranjan Dasmusi had said.
“It will effectively regulate and develop commodity forward marketing in India,” Dasmunsi told reporters, while explaining that the commission was thus far under the administrative control of the Ministry of Consumers Affairs.
But the CPI-M said it opposes the proposed changes, since it includes allowing foreign participants and intermediaries in the commodity futures market, adding the government should also bar futures trading on farm commodities.