The Indian government had last year banned futures trading in agri commodities like mustard, soybean and gram. Due to this farmers are not getting the right price for their agricultural produce.
NCdex CEO has said that the reason for the increase in prices of many commodities is the rising diesel prices and global factors. They have nothing to do with futures trading. He has said that the price of edible oil has increased all over the world and the reason for the increase in the price of oil is geopolitical conditions.
He said that there are many other reasons for the increase in the prices of edible oils including weak soybean crop in countries like Paraguay, decline in soybean production in Argentina and Brazil. He said that the sunflower crop was affected due to the war in Ukraine, while Indonesia had decided to stop exporting palm oil due to internal reasons.
India’s leading commodity exchange NCdex allows futures trading in time 11 commodities. These include guar gum and spices, which include cumin, coriander and turmeric. The CEO of NCdex said, “A year ago due to geopolitical conditions, there was an increase in the prices of food grains worldwide. Now that the supply of edible oils has improved, its prices have also stabilized.”
India imports 56 per cent of its edible oil requirement. On the fluctuations in the price of gram, he said that the share of gram in the production of pulses in India is 50 percent. There is a ban on future trading of gram for the last one year, due to which its price has remained stable.
He said that there is no such way by which any person can use futures trading to change the price of agri commodity for his own benefit.