Stating that forward trading in essential commodities and food grains was responsible for the skyrocketing prices, the Leader of the Opposition in the Delhi Assembly, Jagdish Mukhi, on Monday asked Prime Minister Manmohan Singh to take out cereals and pulses from the ambit of forward trading.

Fluctuations

Addressing a press conference, Mr. Mukhi said it was because of the forward trading that fluctuations ranging from Rs.150 to 200 per quintal were taking place in one day in trading of such commodities. Charging that there was a deliberate attempt to jack up the prices and earn profits without making any physical investment, Mr. Mukhi said several companies who were in control of forward trading in the country were taking full advantage of the artificially created fluctuations in the market. "The real trade in the market has collapsed and the prices of cereals and pulses are rising at such an exorbitant rate that it has made the life of the common man miserable."

"It is high time the UPA Government took this step if they have to save the aam aadmi from being crushed under the weight of high prices perpetuated by some unscrupulous companies who have no other agenda but to make profits,'' he added.

Present mess

Holding the UPA Government responsible for the present mess on the price front, he said it was the UPA Government that put the pulses under the forward trading regime during April-July 2004.

"The result is that one item of cereal or pulses is sold and purchased with business running into thousands of crores whereas the actual consumption during the entire period of such an item is not even half the total value of the trading. It is just like single-digit lottery that ruined the lives of thousands of individuals before it was banned."

Mr. Mukhi said the intention of forward trading was to ensure a remunerative price for farmers for their produce.

However, the companies indulging in this activity have never purchased even 1,000 bags of food grains from the framers and everything was done with speculative interest in mind.

Accusing the Government of trying to benefit the multinational companies, Mr. Mukhi said pulses were being imported at exorbitant rates by NAFED from Myanmar with the intent of benefiting a particular company.

``The next on the list of the private companies are fruits and vegetables. They are already lobbying with the UPA Government to allow forward trading on these commodities. If this happens, things would become very difficult for the common man. The Prime Minister should intervene in the matter in order to save the people from becoming victims of the conspiracy hatched by the multinational companies.''