Govt set to launch new type of trade replacing DO from Jan
Thursday, 2 December 2010
FE Report
The government is set to introduce a new trading system in the country's commodity market from January next scrapping the age-old delivery order (DO) method amid fears that prices might be 'distorted' more in the new method.
The government wants to introduce the dealership system in place of the DO process, which is viewed as a kind of future market.
"We're planning to introduce the new system from next year as the DOs are largely responsible for price manipulation of essentials in the local market," commerce minister Muhammed Faruk Khan told reporters at his office Wednesday.
The government initially wants to engage in trade in edible oil and sugar under dealership.
The traders, however, pointed out that commercial importers would feel discouraged under the proposed dealership system as they (importers) would face trouble selling their imported goods.
They hinted that the final consumers would not get any benefit from fall in the prices of commodities in the international market once the new method is introduced in the country.
Leading importer of commodities, Abul Bashar Chowdhury, told the FE: " I don't understand how the authorities will stop functioning of DOs."
The government is set to introduce a new trading system in the country's commodity market from January next scrapping the age-old delivery order (DO) method amid fears that prices might be 'distorted' more in the new method.
The government wants to introduce the dealership system in place of the DO process, which is viewed as a kind of future market.
"We're planning to introduce the new system from next year as the DOs are largely responsible for price manipulation of essentials in the local market," commerce minister Muhammed Faruk Khan told reporters at his office Wednesday.
The government initially wants to engage in trade in edible oil and sugar under dealership.
The traders, however, pointed out that commercial importers would feel discouraged under the proposed dealership system as they (importers) would face trouble selling their imported goods.
They hinted that the final consumers would not get any benefit from fall in the prices of commodities in the international market once the new method is introduced in the country.
Leading importer of commodities, Abul Bashar Chowdhury, told the FE: " I don't understand how the authorities will stop functioning of DOs."