iGrain India - The Indian Vegetable Oil Producers Association (IVPA) has called for the removal of the ban on futures trading in oilseeds, emphasizing the importance of such trading for improving price risk management and ensuring better returns for farmers.
According to the IVPA, futures trading benefits the entire agricultural value chain, incentivizing farmers to expand their crop areas and increase production.
For over two years, futures trading in soybean, palm oil, mustard, and related products has been prohibited. This ban was initially introduced due to high and volatile prices in these commodities.
However, despite a subsequent decline in soybean prices, the government has not yet lifted the ban, leaving industry and trade groups frustrated.
In states like Madhya Pradesh, Maharashtra, and Rajasthan, soybean prices have fallen below the minimum support price, even after the government raised import duties on edible oils by 20 percentage points.
However, this measure has not led to significant improvements in prices. With mustard sowing continuing and softening prices emerging, there is growing concern about a decline in farmers' enthusiasm for cultivating this important oilseed crop during the Rabi season.
The Solvent Extractors Association of India (SEA) has also joined the call, sending a memorandum to Union Ministers urging the government to lift the ban on futures trading.