A desperate government has resorted to drastic measures to tackle inflation. Its latest salvo is the decision to ban futures trading in four commodities— potato, soya oil, chana and rubber.
This decision was taken despite the Abhijit Sen Committee observations that it could not establish a link between the futures and the spot rates.
And privately, senior bureaucrats concede that the move will not have any impact on the ground.
A senior government official told BT
: “It’s now about managing expectations and we have to be seen to be doing something to fight inflation. We don’t think the futures ban would make a difference as inflation is a global phenomenon.” For the time being then, it appears, we’ll have to live with high inflation.