Despite acknowledging the fact that there is little evidence to link the price rise to futures trading, Avijit Sen panel has taken the safe route on the politically sensitive issue, and maintanied that freeze on futures trading of rice, wheat, urad and tur should continue. The draft recommendation of the panel shows its sensitivity to the perception among the political class that futures in food articles have been a major factor behind the current price spiral. Though the committee is likely to submit its report next week, the recommendation to persist with the suspension of the trading of the four items, though not backed by scant evidence, is unlikely to be changed. Political parties like CPI (M) and CPI are in the forefront of the campaign demanding ban utures trading in commodities. It was the pressure from them and others which led the government, anxious to avoid charges of sheltering those speculating in food items, to suspend the trading in wheat, rice, tur and Urad in 2007. The unabated rise in prices disproved the link that was sought to be established between the futures and the volatile indexes. With elections nearing fast, amid indications that price rise will be one of the hot issues in series of contests begining with the one in Karnataka next month, government seems to lack the stomach for a fight on the issue. The committee, in a draft report circulated among the members, favoured the role of speculators in the futures market as they provide liquidity to the market. He said that informed speculation only helps the market in price discovery of the commodity. A senior economist said banning of futures trading would be a knee-jerk reaction of government and would hurt reforms in financial sector. The committee also pointed out that that even in the developed economy like US people used to balme futures trading for the price rise. The panel has suggested to form a committee on commodity market similar to that on capital market to finalise policy issues concerning development and regulation of market. No direct link of forward trading and price rise