Multi Commodity Exchange of India (MCX) today commenced futures trading in refined, bleached and deodorised (RBD) palmolein.
Multi Commodity Exchange of India (MCX) today commenced futures trading in refined, bleached and deodorised (RBD) palmolein. “We have commenced new RBD palmolein futures contract, which expands our existing suite of agro products. The exchange has launched May, June and July 2017 contracts in RBD palmolein with 10 MT as the trading unit and Kandla in Gujarat as the basis centre,” the exchange said in a statement here. The transaction charges on RBD palmolein futures contract is Re 1.0 per Rs 1 lakh of turnover.
The new RBD palmolein futures contract, alongside the existing crude palm oil (CPO) contract, is expected to benefit refiners, importers, and palmolein end users, providing market participants solution for managing refining margins and hedge against unfavourable price movements in the global crude palm oil and palmolein markets, it said.
India is one of the world’s largest vegetable oil importing countries. Palm oil accounts for 70 per cent of the total edible oil imports. India imported roughly 5.75 million tonnes of palm oil and around 2.62 million tonnes of RBD palmolein during 2015-16. The oil is used extensively in the food processing sector, potato chips, doughnuts, salad, cooking oils, confectionery, biscuit and bakery industries.