Commodity market regulator Forward Markets Commission is not inclined to allow future trading in cement, a proposal mooted by leading bourse NCDEX.
“We expressed our reservations on futures trading in cement,” FMC Member Kewal Ram said referring to the permission sought by National Commodity and Derivatives Exchange (NCDEX) to start trading in cement futures.
NCDEX had approached FMC for cement futures about a year ago, he said, adding that it was an ‘old issue’.
“At one stage we said no, but they (NCDEX) approached us again and we have not decided whether to allow it (cement trading),” Ram said. He said cement was not suitable for futures trading right now, though government lists cement as one of the several commodities that can be traded through the exchanges. When contacted, Cement Manufacturers’ Association vice president H M Bangur said: “I am surprised, I have heard it (cement trading) for the first time. NCDEX has never approached us with the proposal.”
Another official from the cement industry said: “Cement is not a commodity. The value is because of brand.”