It was in May this year the government had permitted futures trading in theoilseeds complex (oilseeds, oils and deoiled cakes or meals). These aregroundnut, soyabean, sunflower, safflower, coconut, sesame, cottonseed,rapeseed/mustar and ricebran. Soon thereafter, some 21 commodity exchangeshad sought clearance from the Forward Markets Commission (FMC) to trade infutures of oilseeds complex.

The names of the comexes cleared by the government are Bombay Oilseeds andOils Exchange (BOOE), Navi Mumbai; Kanpur Commodity Exchange, Kanpur, SopaBoard of Trade (SBOT), Indore and the Cochin Oil Merchants' Association andthe First Commodities Clearing Corporation of India.

The size of the India's seed industry alone is estimated at over Rs 40,000crore. Given the annual import of edible oils of around 40 million tonnesannually and Rs 3,000 crore exports of deoiled cake, the overall size of thedomestic oilseed complex is considered to be substantially huge.

The FMC had recommended names of four comexes, which, it is learnt, have nowbeen cleared by the Ministry.

According to the clearance, Indore-based SBOT and Kanpur Commodity Exchangehave both been permitted to trade in futures of rapeseed/mustardseed and itsoil, in addition to futures trading in soyabean complex, cleared recently.

It is expected to commence trading in futures in soyabean complex thismonth. Soon, it would also trade in futures of rapeseed/mustarseed and itsoil.

Minister of consumer affairs and public distribution Shanta Kumar hadindicated that SBOT will be allowed to trade in futures ofmustarseed/rapeseed and its oil while inaugurating the 37th All IndiaConventiion of Oilseeds, Oils Trade and Industry in Indore last month.

The Cochin Oil Merchants Association and the First Commodity ClearingCorporation of India (FCCCI), Cochin has been permitted to trade in futuresof coconutoil and copra (deoiled coconut).

The long-standing demand of BOOE will now be met with the permission totrade in futures of around seven oilseeds and their derivatives - groundnut,sunflower, cottonseed, sesame, ricebran, safflower in addition to castorseedand its oil which it continues to trade.