Forward Markets Commission Chairman B. C. Khatua said the pulses market might continue to be bullish due to insufficient production in kharif.
Shortfall in rice
Addressing a press conference here on Wednesday after a day-long meeting with corporate entities in the agriculture sector, he, however, said that the late rains would be good for rabi crop and everybody was hopeful of a good crop of pulses, oilseeds and wheat. There might be some shortfall in rice.
He said the prices on the food front would be under control due to buffer stocks and bulk production for domestic consumption.
Mr. Khatua, who interacted with exporters, procurers and processors, said the crude oil and natural gas markets globally were getting bullish because of discernible reluctance on the part of western markets to bring in tough regulations to rein in the scope for speculation.
He said the poor monsoon in India and its impact on domestic markets together could lead to a bullish agri-commodities market. He advised agriculture processors to keep in mind the impending price risks and consider mitigation of the same on the exchange platform.
A bill to amend Forward Contracts (Regulation) Act was expected to be introduced in the winter session of Parliament. At present, the Law Ministry was vetting the bill which would allow more products.
