Mumbai, April 13: Commodity markets regulator Forward Markets Commission (FMC) today said that futures trading in the US market was responsible for rising commodity prices whereas the reverse is true in India.

"The bulk of inflation which is substantially caused by commodities are not traded on our commodity exchanges. Fruits and vegetables which are presently driving inflation are also not traded on our exchanges," Forward Markets Commission (FMC) Chairman B C Khatua told reporters on the sidelines of a conference here.

Rising food prices, apart from globally high oil and metals prices, have pushed up the country's inflation to 7.41 per cent.

Khatua said that several hedge and PE funds were driving commodity prices higher in US market and the US Commodity Futures Trading Commission (CFTC), despite its experience and power, has not able to control this, he said.

CFTC is a regulator for both, the commodities and capital market derivatives segment.

Khatua said that a few commodities such as steel were witnessing a strong price because of speculation by some hedge and PE funds.

The Indian market is entirely a retail market, driven by small hedgers, producers, exporters, importers, processors or small speculators.

"We don't have large institutional speculators who have got tonnes of money to pump into the market and corner it," Khatua said.