A notification allowing futures trading in rapeseed, mustardseed, groundnut, sunflower, ricebran, cottonseed, coconus, sesamun, and safflower will be issued soon, a spokesperson told newsmen here on Wednesday.

Oilseeds production in the country has increased significantly to around 250 lakh tonnes in 1998-99, from less than 150 lakh tonnes almost 10 years ago. In terms of oil, production in the current year is estimated at over 90 lakh tonnes. India is more or less self-sufficient in edible oil following the launch of the oil mission.

The Government had allowed futures trading as part of its overall objective of liberalising the economy. The step will help stabilise the wide fluctuations in prices, and safeguard the interests of farmers, stockists, exporters and othersinvolved in trading in these commodities by providing hedging facility to minimise the risk of adverse price fluctuations.

The Forward Market Commission will regulate and formulate rules for forward trading in eight oilseeds and their products. The Forward Contract Market Regulation Act will also be amended accordingly to allow forward trading.

A ban on forward trading was imposed in the early sixties to check excessive speculation in all types of commodities.

Excessive speculation in these commodities was witnessed as population was increasing but production could not keep pace with it.

It is learnt that initially, forward trading centres will be opened in the producing centres only. For example, forward trading in groundnut and its products will be allowed in one or two centres of Gujarat.