New Delhi, Sept 13 (KNN) Solvent Extractors’ Association of India on Monday urged the Securities and Exchange Board of India (SEBI) to resume the future trade of crude soybean oil and crude palm oil.

In December last year, SEBI had suspended futures and options trading in seven agricultural derivatives for one year. The primary reason for the suspension was to ensure risk management and price discovery mechanism.

In a letter to the SEBI Chairperson Madhabi Puri Buch, the edible oil industry body said the suspension of futures trading in these commodities deprived importers from hedging their price risks in rupee-denominated soybean oil and crude palm oil futures on the Indian commodity exchanges.

“In recent month’s edible oil importers have faced huge financial losses due to double whammy arising out of abnormal volatility in international and domestic prices on one side and weakening rupee on the other,” the letter to the SEBI read.

India is the world’s second-largest consumer and number one vegetable oil importer, and it meets 55-60 per cent of its need through imports.

“We are of the considered view that futures market is not responsible for edible oil inflation as the same has been proved in the recent run-up which had nothing to do with futures market as the same was not operational,” it said.

The edible oil industry are of the view that a healthy futures market is very significant for price risk management.  (KNN Bureau)