For this purpose, both, BOOE and SEA will formally enter into an agreement by signing a memorandum of understanding (MoU) on Wednesday, August 18 for promoting a multi-commodity nationwide futures exchange for oilseeds sector.

It is for the first time that a trade body representing the interest of exporters and importers in oilseeds and edible oils will join hands with an established commodity exchange to set up nationwide futures exchange for the oilseeds sector.

"The proposed alliance between BOOE and SEA is an important step in the country's commodity futures markets," said BOOE president Navinchandra Shah. "This will pave the way for a healthy trading in futures of the oilseeds sector in the country."

SEA, representing the crosssection of oilseeds trade (including imports, exports and oilseeds extraction industry) by around 1,000 members will contribute around Rs 25 lakh to the computerisation programme of BOOE and Rs 6 lakh to the Prime Commodities Clearing Corporation of India (PCCCI), the clearing house set up by BOOE.

BOOE on its part, will offer to SEA two seats on the boards of both the BOOE and the PCCCI.

Till new alliances of this type are announced by commodity exchanges and trade bodies in other parts of the country, the proposed alliance of BOOE and SEA is likely to be a major force in the commodity futures industry which will hopefully infuse vibrancy to the otherwise lacklustre trading in oilseeds futures.

Shah said, in order to further spread its reach to other oilseeds trading associations, BOOE plans to rope in two other big bodies in the oilseeds sector -- The Groundnut Extraction and Exports Development Authority (GEEDA) and Indian Oilseeds Produce Exporters' Association (IOPEA).