Traders Seek Permission For Futures Trading In 8 Commodities

Rajkot Oil, Oilseed and Bullion Merchant Association (ROOBMA) seeks permission to commence futures trading in eight commodities.

The government has already permitted some centres like Mumbai, Indore, Kanpur, Kochi, Ahmedabad etc to conduct futures trading in oil, oilseeds, oilmeals, pepper, cotton, palm oil etc.

Looking at such decision, ROOBMA demanded permission for futures trading in eight commodities like Groundnut, Groundnut oil, Groundnut meal, Cotton, Cottonseed, Cottonseed oil, Cottonseed cake and Palm oil.

ROOBMA president Haribhai Chhaganlal told Business Standard that after finance minister's recommendations, the Forward Market Commission (FMC) invited applications from various commodities exchanges.

We also applied, but FMC permitted four-centers viz.Indore, Kanpur, Kochi and Mumbai for future trading in various commodities but Rajkot was rejected.

Haribhai with the support of Union minister and MP of Rajkot Dr.Vallabhbhia Kathiria and met Santakumar, Union minister of food and civil supplies a month ago. After listening the exchange's arguements, minister told that the FMC will inspect the Exchange once again and then he will take a proper decision.

A two-member team comprising Anupum Mishra and Jayant visampaiam inspected ROOMBA last week and studied all the possibilies and submitted their report to FMC.

Haribhai assured that once the FMC gives permission for the futures trading then they will go for 'online' trading and will add more members in the exchange.

Now we hope that Rajkot would soon get permission of future trading in eight commodities because the inspection team was happy after seeing all infrastructure set-up and also was impressed with the existing castorseed futures trading volume, which Rajkot runs for last 10 years successfully.

Saurashtra is producing 40 per cent of the total groundnut crop and 25 per cent of cotton production. Palm oil import at Kandla port which quite near to Surashtra is around 50 of the total imports. Therefore saurashtra is producing, processing and consuming groundnut, cotton's derivatives and palm oil on big way.