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Revoking the ban on futures trading of wheat, rice, tur and urad which will clarify the long-term intentions of the Government and send the right message to the commodity industry stakeholders.

Client-wise limits should be increased further, in agri and also in metals so that real producers and consumers can hedge effectively. Currently, the limits are too small for serious players to participate with confidence.

Banks, MFs, FIIs should be allowed to participate in futures markets giving much needed depth to markets and diversification opportunities to investors

Clients should be able to offset profit and loss against normal business income.

Electronic spot markets should not only be allowed but also be encouraged i.e. reforms on a national level in agricultural marketing.

Uniform sales tax / VAT regime across States will remove the bottlenecks which prevent smooth flow of commodities from producer regions to consumer regions which makes for price variations across the country. This can also be considered for exchange-related deliveries.

Jayant Manglik, Head-Commodities, Religare Commodities Ltd.

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