Futures Trading Beneficial For Palmolein Importers

Changes in government policy, absence of hedging facilities and unsteady movements in import duty structure are some of the problems plaguing importers now, he said.

"But if one becomes party to future contracts, he would be able to sell in advance on the basis of import contracts entered into, Shah said at the launch of futures trading in RBD palmolein, groundnut oil and sunflower oil at Vashi, Navi Mumbai, on Friday.

Shah said that this assumes significance in the aftermath of the liberalisation drive initiated by the government as foreign participation will ensure a better price in accordance with international standards.

 

He noted that in order to meet the domestic demand for edible oil, the country imported edible oil, and RBD palmolein being the cheapest, accounts for 60 per cent.

Since futures trading in RBD palmolein is not available in Malaysia, the largest exporter, the facility in India, the largest importer, will naturally become the global benchmark, he said.

Booe, with help from Satyam Computers, will be able to provide online trading by December, he said, and added that the association was planning futures trading in other commodities like rice bran, sesame, safflower, etc, considering their trading potential.