Fair trade regulator CCI is considering the issue of possible cartelisation in trade of guar gum, one of the country’s largest exported agri products that is primarily used by oil and gas exploration industry.
“The issue of cartelisation in the trade of guar gum is under consideration,” Corporate Affairs Minister Sachin Pilot said in a written reply to Rajya Sabha today.
There has been a rise in the price of guar gum, extracted from guar seed, over the last few years.
Commodity market regulator Forward Markets Commission, in March last year, had banned futures trading in guar seed and guar gum to curb price volatility and speculation. It had also launched probe into the matter.
FMC had banned guar futures when spot prices were Rs 26,000 a quintal. After the ban, prices increased to Rs 32,000 and remained at elevated levels for 3 months.
Meanwhile, the Minister said Competition Commission of India (CCI) took suo motu cognisance of the unusual rise in onion prices during December 2010 but did not find substantial evidence about cartel in onion market at that point of time.
Besides, CCI conducted a study through Bangalore-based Institute for Social and Economic Change to have a comprehensive view of the agriculture market including competitiveness in major onion markets of Maharashtra and Karnataka.
The report, aimed at improving efficiency of agriculture market through competition, has been circulated by CCI to the agriculture ministry to seek their views on further action to ensure competition, Pilot said.
Pilot said CCI is also probing one case related to steel sector, which was received on transfer from erstwhile MRTP Commission.