COMMODITY VIEW - Reactions to Budget 2008/09

MUMBAI (Reuters) - Following are the reactions from key participants in the commodity market to the union budget of 2008/09 announced on Friday.

Finance Minister Palaniappan Chidambaram said there was pressure on domestic prices from food articles and the government was determined to be self sufficient in foodgrains.

Chidambaram proposed to provide special funds for tea, cardamom, rubber, coffee, coconut, cashew and pepper.

The minister also proposed a transaction tax on commodity futures trades.

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RAJINI PANICKER, HEAD OF RESEARCH, MF GLOBAL COMMODITIES INDIA LTD:

"There were expectations that edible oils would have duty cuts to help lower prices. That did not happen, so oils and oilseeds hit their upper circuits. This market may stay firm and continue to take direction from overseas factors that are bullish at the moment.

"There was also an expectation that sugar would be decontrolled and that there would be some measures for use of ethanol. That would have had a mixed impact on sugar.

"Now, sugar will continue to be governed by the factors that were affecting it earlier -- that of higher quotas which make it bearish.