Soyabean processors body SOPA has asked regulator Sebi to ban futures trading in soyabean seeds while alleging that "unscrupulous operators" are rigging prices of the commodity which has hit the processing industry.
In a letter to Sebi Chairman U K Sinha, SOPA said that few speculators have been "rigging" the future trading in soyabean for their advantage, which has made the its processing unviable.
"The net effect of this speculation driven price rise is that the soybean industry is suffering from huge disparity in crushing... More than 50 per cent of the soybean crushing plants have already closed down due to this speculation driven price manipulation by just a few unscrupulous operators," Soybean Processors Association of India (SOPA) said.
Indian soyabean meal exports have fallen drastically following the unusual rise in soyabean prices due to unhealthy speculation at the commodity exchanges, it said.
"The industry is in crisis and closure of futures' trading is the only way out to make the soya processing industry survive in these critical times..
"Few large speculators have managed to rig the futures trading in Soyabean seed to their speculative advantage, putting the physical trade and industry totally out of gear," the letter said.
It also said that the rampant speculative activity by some dominating players have sidelined the genuine players.
"..In our annual general meeting held last week on September 30..It was unanimous view of every member present that if the industry has to survive, there should be no future trading in commodity (soyabean seed) which is already in severe short supply."
The industry body said the US and Brazil are offering soyabean meal at USD 100-150 per tonne, about 23 per cent lower than Indian price.
As a result, soybean meal exports during 2014-15 fell drastically to 6.46 lakh tonnes as against 28.41 lakh tonnes in the previous year, and this year exports may be even lower.
SOPA also said that speculative activity adversely affecting domestic users of soyabean meal including, poultry, fisheries and livestock feed industry.
