With commodities attracting more speculators across the world, some countries, like India, are making some changes in order to combat rising prices not connected to normal market forces.
Some of the specific futures trading items they are considering banning are potatoes and edible oil, which has risen in price considerably because of futures speculators. Inflation in India is at a 13-month high.
Last year the Indian government added rice and wheat to the futures that can't be traded.
Those involved with commodity exchanges and traders feel this isn't a good idea, because it probably won't have much impact on food prices.
“The futures trading ban may not have any impact on edible oil prices, as international prices and imports duties determine the prices,” a trader said.
Along with foods delisted in futures trading, things like coal, steel, iron, jute drugs, petroleum products and auto-related accessories are not included in futures trading in India at this time.
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