According to Shah, the size of India's oilseeds economy (seeds, oils and de-oiled cake) is estimated to be around Rs 50,000 crore. "The huge potential in futures trading in these commodities could be tapped only if multiple commodities are permitted on to the exchanges. It is therefore, important that the government rethinks its policy of giving permission for only one commodity to test how best the exchange will perform for more than one commodity for futures trading."

Announcing BOOE's foray in launching the world's first and the only futures exchange for castoroil, at his residence in Mumbai, Shah said: The restrictive policy is one of the main reasons why speculators, hedgers (including corporates and exporters) and commodity traders currentlyprefer to stay away from trading in commodity futures.

Other reasons include lack of knowledge about commodity futures among the new generation, and the unwillingness of the trading community to shed their decades old practice of trading on the parallel illegal market which is more easy and rather opaque from the regulators.

BOOE intends to formally kick off trading in international castor oil futures on May 10, 1999 at the exchange's premises in Vashi (Navi Mumbai) through an International Castoroil Division (ICD).

According to Shah, six members have registered themselves with the BOOE sponsored Prime Commodities Clearing Corporation of India Ltd (PCCCI) for trading on the ICD, during the maiden launch of the international futures in castoroil. These are: Hathibhai Bulakhidas, Lynard (one of the leading foreign improter of castoroil), Jayant Oil Mills, Mulji Devshi (all full trading members) and two others, a broker and a dealer. All these have contributed around Rs 26 lakh to the equity ofPCCCI.

BOOE has contributed Rs 10 lakh, while the Bank of Baroda, the first clearing member of BOOE has chipped in Rs 1 crore. Union Bank of India, the second clearing member in the waiting has agreed to put in Rs 50 lakh, if accepted.

The BOOE will run sessions for mock trading on May 7 to familiarise players with operational aspects.

Two simultaneous contracts for August '99 and October '99 delivery of the first special grade (FSG, formerly known as BSS) will kick off the trading in international castoroil futures on Monday. The other months for the international castoroil futures will be December, February April and June.

"Despite the paucity of funds, the exchange and its members have agreed to go in for online trading in phases," Shah said. The total cost for going online will be Rs 50 lakh and may be achieved after a year's time.

The international castoroil futures trading will be held five days a week Monday through Friday and the unit of trading would be five tonnes. However, the deliverywill be in 10 tonnes and multiples thereof. The quotation for castor oil FSG (First Special Grade) will be in Indian rupees per 10 kg.

Besides Mumbai, Navi Mumbai, Nhava Sheva port and Kandala the delivery points will be at Kapadwanj, Palanpur, Unjha, Naroda, Rajkot in Gujarat and Hyderabad.