In an interview with Vrinda Sharma of Zee Media Corp, Shiv Shrivastava, MD & CEO, IGuru Research shares his views on commodity markets' expectations from the Budget 2014-15.
What are the key expectations of commodity sector from the Budget?
Gold import duty cut and withdrawal of CTT (Commodity Transaction Tax) are the two main expectations of commodity sector from this Budget.
Trader lobbies are expecting a cut of more than 5 percent in import duty of gold? Will the govt cut gold import duty to such a large extent?
I think govt will not cut the gold import duty in such a large extent. A maximum cut of 2 to 3 percent is possible.
Commodity sector is also demanding withdrawal of CTT. Will govt accept this in the Budget?
There is a little chance of complete CTT withdrawal. But govt might reduce it by 0.25 percent to 0.50 percent.
It is also rumored that govt might ban future trading of some of the commodities in view of rising inflation. What is your view on that?
Commodities are not responsible for price rise. It is demand and supply scenario which causes inflation. Govt has taken right steps by increasing onion MEP to curb price rise. There is no need to ban future trading of any essential commodity on exchanges.
Govt has recently taken several steps to contain inflation. Apart from that, What are the other options that should be taken by the govt to tackle rising food inflation?
There should be a strict vigilance on hoarding. Second, there should be a 'fixed price band' for each and every essential commodity.
FCRA is yet to be approved. Will govt take some action on this long awaited bill in the Budget
The government should take some action on FCRA bill which will give more power to FMC for the regulation of commodity trading in India by keeping a strict vigil on speculators.
What are the other key issues that the commodity sector wants to be fulfilled?
Expansion of warehouse facility across the country, especially in rural areas, will help the farmers.
