Inflation is the economically and politically most sensitive issue that the Manmohan Singh is fighting these days. In the last few weeks, inflation rate in India has been going up, despite several measures from the government and the Reserve Bank of India.

One such measure was ban on futures trading in essential commodities such as wheat, rice, urad and tur.

Is futures trading in agri commodities responsible for inflation in India?

In an exclusive interview to Commodity Online Special Correspondent Abhijit Roy, India's Minister of State for Agriculture and Consumer Affairs Kantilal Bhuria says futures trading in commodities is one of the reasons for price rise.

He added that ban on futures trading in some commodities can be considered when the price rise in under control.

Excerpts from the interview:

Is futures trading responsible for inflation?

It is a combination of factors that has led to inflation. That includes futures trading in essential agricultural commodities.

What is the government doing to contain inflation?

Government is keeping a close eye on the situation. If any abnormal movement in price rise is witnessed, then the government will not hesitate to take any action and can ban other commodities from futures trading.

Does the government plan to lift the ban on future trading in commodities such as wheat, rice, urad and tur?

At present government has no plans to lift ban on futures trading in these commodities. But continuous monitoring is being done by the high powered committee constituted by the government to look into the price management. When the situation comes under control and price rise in essential commodities is contained, then the government can think about lifting the ban on futures trading in these items.

When will the government consider to lift the ban on futures in these commodities?

Any decision regarding lifting the ban will only be taken after the recommendation of high powered committee, which Prime Minister Manmohan Singh has formed in this regard. The committee is monitoring the situation and informing the state and central governments regularly to take necessary corrective steps to contain inflation.

Will there be a ban on futures in other commodities?

As such there are no plans to ban futures in other commodities. But if any abnormal movement in price rise is witnessed in essential commodities, then the government will not hesitate to take any action and more commodities can also be banned.

The government is considering foreign direct investment in commodities exchange. What is your view?

The finance ministry is looking into this matter. Foreign investment in commodities sector will be allowed only after proper discussions and consideration.

When do you think price rise will come under control?

The government is taking every possible step to control inflation and the prime minister is monitoring the situation personally. I do not want to give any timeframe right now. But I think very soon we will get over this problem.