Having set the clear example that markets are to blame for the evils of commodity price inflation, the United States is beginning to find companions in the membership list of the Market Lockdown Club.
India banned futures trading in sugar, a day after Farm Minister Sharad Pawar said the government may extend a program allowing duty-free imports of raw sugar to bolster local supplies.
The ban will remain until Dec. 31, Forward Markets Commission spokesman Anupam Mishra said today, without giving a reason for the move. While existing contracts will remain valid, new contracts won't be allowed, he said in a telephone interview today from Mumbai.
Sugar prices have risen 3 percent on Mumbai's National Commodity & Derivatives Exchange since April 20, when N. Sanyal, joint secretary at the food ministry, said futures trading may be halted if prices continue to rise. The increase in prices is not related to futures trading, analyst Amol Tilak said.
They love free markets. Except when they don't.
India Bans Sugar Futures Trade With Immediate Effect [Bloomberg]