India: Industry body urges the government to allow futures trading in the crude palm and soybean oil

Published 2024년 11월 25일

Tridge summary

The Solvent Extractors’ Association of India (SEA) has appealed to the Indian government to reconsider its decision to halt futures trading in internationally traded commodities such as crude palm oil and crude soybean oil, a move that affects the country, which is the world's second-largest consumer and top importer of vegetable oils. The association's request, outlined in a memorandum to the central government and financial regulators like SEBI, emphasizes the importance of resuming futures trading to manage price risks, foster orderly agricultural markets, and provide vital price signals. The suspension of futures trading in seven agricultural commodities, in effect since December 2021 and extended multiple times, has reportedly led to significant financial challenges for industry members and a lack of critical hedging and price discovery tools.

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Original content

New Delhi [India], November 25 (ANI): Edible oil industry body has once again requested the government to reconsider resuming futures trading in internationally traded commodities like crude palm oil and crude soybean oil. Notably, India is the world’s second-largest consumer and number one vegetable oil importer, and it meets 55-60 per cent of its needs through imports. The Solvent Extractors’ Association of India, recently sent a memorandum to the central government seeking reconsideration of the 2021 decision and directing SEBI to resume futures trading in all commodities or, at the very least, in internationally traded commodities like crude palm oil and crude soybean oil. In the absence of trading on commodity exchanges, the industry body SEA argued that its members have faced immense challenges, including financial losses. “The industry was hopeful that the suspension would be lifted to enable smoother operations, but the continuation of this restriction has further weakened ...

Source: Theprint