Edible oil industry body Solvent Extractors Association of India (SEA) on Monday urged the government to lift the ban on futures trading in key agricultural commodities, including crude palm oil and soybean. SEA says this is having a financial impact on its members. According to PTI News, the ban was first imposed on seven agricultural products in December 2021, which has been extended several times and the current extension is till December 20, 2024.
Call to five ministers
According to the news, the Solvent Extractors Association of India has appealed to five ministers, including Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, saying that the absence of futures trading has hampered management. of price risk and market development. Association president Sanjeev Asthana, in a memorandum to ministers, said the industry was hopeful that the suspension would be lifted for smooth operations, but the continuation of this restriction has further weakened an essential disaster mitigation tool. risks.
inflation does not increase significantly
The SEA highlighted that studies showed that futures trading did not significantly increase inflation, which was a major concern when the ban was imposed. The industry body said current soybean prices are below the government-set minimum support price (MSP) of Rs 4,892 per quintal, while rapeseed prices are slightly above its minimum support price (MSP). support of Rs 5,950, PTI reported.
The association has particularly emphasized the need to restart futures trading in internationally traded commodities such as crude palm oil and crude soybean oil. It argues that the ban has exposed companies to greater price volatility.
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