SEBI allows trading of soya oil in the Exchanges

The growing deficit of edible oil and the large amount of imports of the the degummed soya oil between the year 2015 and 2016 has led the markets regulator, the Securities and Exchange Board of India (SEBI) to allow futures trading of the degummed soya oil. SEBI's permission to allow this particular kind of future trading is in its final stages and expected to allow the futures trading at all Exchanges.

India's import of degummed soya oil is largely sourced from Argentina and Brazil, the value widening to 4.2 million tonnes between November 2015 and October 2016.

The sanction is expected to benefit the Indian traders substantially, as the futures trading of the commodity will protect the traders against volatile price rise and stabilise the trade of the commodity. 

Along with the degummed soya oil, pepper and chana trading will also be relaunched into the markets. At present, Exchanges trade in commodities like soybean, refined soya oil and oil meal. With the futures trading of degummed soya oil, the soya complex constituting soybean, soybean oil and soybean meal will round up in terms of hedging and price discovery in the Indian markets.