On 19th December, Ministry of Finance, Department of Economic Affairs Financial Marketing Division in a communication to the Chairman, Securities and Exchange Board of India (SEBI), Mumbai directed that under the review of prices and availability of essential commodities it is decided that for next one year future trading is to be suspended with immediate effect for SOAYABEAN and its derivatives. Other commodities for which forward trading is suspended are Paddy (Non Basmati), Wheat, Channa, Mustard seeds and its derivatives, Crude Pam Oil and Moong.
Department of Economic Affairs Financial Marketing Division also directed SEBI to pass necessary instructions to market with immediate effect.
The poultry industry in India was demanding for the suspension of forward trading of SOY for quite a long time to arrest the increasing prices of SOYBEAN and its derivatives.
It is to be noted that Soya is a main ingredient for poultry feed and its skyrocketing prices had resulted in heavy losses to poultry farmers.
Earlier in September Indian Government had allowed the import of GM soya which had given a big relief to Indian Poultry Farmers across the country.
Now with the suspension of forward trading of SOYBEAN and its derivatives it is expected that soy prices will come down and Indian poultry industry which was incurring huge losses due to high input cost will be able to reduce its losses.
Further due to winter it is expected that demand for both Egg and Chicken will see up word trend and poultry farmers will be able to get remunerative prices for their product.
Post Date: 20 Dec 2021