Preparations to start trading from November were on full swing, while other related works were also on, sources in Soyabean Processors' Association (Sopa), which has been entrusted with the job to float the exchange, said.

Currently, Sopa was focussing on preparing the bylaws for trading, they said.

The futures exchange would have its own building and other necessary infrastructure, they said.

Sopa had made some groundwork in preparing the bylaws and the forward markets commissioner suggested some changes.

Consumer ministry officials say since futures trading in the commodity was a new concept, time was being consumed to formulate the bylaws.

The government had in August cleared the futures trade in soyabean, soyaoil and soymeal as part of efforts to allow futures trading in oilseeds.

The proposed futures exchange will come up in Indore, Madhya Pradesh, which is the leading producer of soyabean in the country.

During the 1998-'99 budget, finance minister Yashwant Sinha had declared that government was keen to allow futures trading in oilseeds to ensure that farmers got remunerative prices for their produce.

Soyabean futures was cleared first as there were no restrictions on the commodity for such trading.

Trading in other oilseeds like groundnut and sunflower are prohibited and restricted under provisions of the Essential Commodities Act.

The consumer affairs ministry, the nodal agency for clearing futures, will have to get the provisions amended after getting the cabinet clearance.

However, the ministry is now more keen on getting off ground futures trading of commodities which have been cleared by the government.

Apart from soyabean, commencement of international futures in castor oil is also pending.

International futures in castor oil, in which India is the largest global exporter, was among the first to be cleared by government in 1997 but its commencement has been delayed in getting the bylaws formulated.

Apart from these two and besides international futures trading in pepper, domestic futures trading is already on for cotton, coffee, jute, turmeric, jaggery and potato.

The government decided to allow futures trading after an expert committee headed by K N Kabra recommended allowing futures in 17 commodities.