Ban on edible oil futures won’t help

by Dave

Potential to add imports of sunflower oil from Argentina to mix. Banning futures trading is counter-productive and will hurt commodity producers since it doesn’t allow for adequate risk management.

via Business Standard
Of the annual consumption of around 11 million metric tonnes (mmt) of edible oil, India imports around 4 mmt of palm oil and 2 mmt of soyabean oil. The monthly trading of edible oil in 2007-08 in Indian commodity exchanges averaged 2.2 mmt.

Bonus Link: Setting up a commodity futures market is the first attempt to reform agriculture in India