India Government is tightening its grip over futures trading of food grains in a bid to curb the growing concern over food security. The proposed amendments in Essential Commodities Act could bring forth a ban on the trading of essential food grains including onion, potatoes and grains in the futures markets.
A new provision has been proposed which enables the government to notify from time to time which items should be exempted from the purview of the ban. The amendment Act shall cover all food items – both perishable and non-perishable.
The move is to prevent the disruption in supply chain as future trading is considered the core reason for this. The proposed amendments states that violation of any of the provision in the Act will be treated as a cognizable and ‘non-bailable’ offence.
