The investors in commodity market such as oil, rice and pulses are anxious with taking over of Narender Damodar Das Modi as Prime Minister because they know that Narender Damodar Das Modi can change the Policies for Essential Commodities in India.
The reason for this is due to a 2011 regulation by Narender Damodar Das Modi as the head in working group on consumer affairs where he recommended to ban on future trading in essential commodities to control prices. Change in Policies for Essential Commodities in India was an initiative by the UPA government in 2010 to control inflation which already crossed 11 percent mark.
The group has suggested that all the essential commodities in India such as rice, pulses, oils etc should be under observation of the futures market and stressed on liberalising agricultural markets through organised retail.
Associate Director (Commodities & Currency), Navin Mathur has stated that though inflation is a concern currently but now market regulators are available to check speculation. But apart from Gujarat, the group had Chief Minister of Andhra Pradesh, Tamil Nadu and Maharashtra who reported to de-list rice, pulses etc from future markets. There were 20 recommendations made which majorly included a suggestion to make offences under the Essential Commodities Act a non-bail able offence, stop hoarding and black marketing of daily necessities such as rice, setting up of special courts under the Essential Commodities Act in India for fast trials.
Ajay Kumar Kedia of Kedia Commodity Comtrade commented that this government election has made clear that a transparent trading platform and reliable data on agricultural commodities is the aim, but the government should also allow mutual funds and financial institutions to take part in commodity market in order to stabilise prices.