News: Commodity futures ban won't lower prices now: FMC

New Delhi - India's commodity markets regulator said Thursday the latest suspension of trading in four key commodities won't lower their prices in the near term, despite the government's best efforts.

"This is more of a cosmetic decision as commodity futures have never been responsible for the rise in prices and hence, should not been seen as helping in bringing them down," B C Khatua, chairman of the Forward Markets Commission (FMC), told Dow Jones Newswires.

After Wednesday's suspension of trading in soybean oil, rubber, potato and chickpeas, volumes on the National Commodity and Derivatives Exchange, the National Multi Commodity Exchange and the National Board of Trade would be severely hit as the four suspended commodities constituted the bulk of volumes on these exchanges, he said.

The FMC suspended futures trading in these commodities as of close of trade Wednesday, under instructions from the Central government. "We will strive to resume commodity futures trading in all commodities within four months," Khatua said.