Budget Expectations: The government can lift the ban on 7 agri futures. According to information received from sources, the government is considering the proposal and it is expected that it may also be announced in the budget. According to information received from sources, the panel has proposed to lift the ban on 7 agri futures.
According to sources, the ban caused more loss than benefit. The market suffered losses due to the ban. There was difficulty in determining the prices correctly. According to sources, the ban was imposed to reduce prices. Recently the ban period was extended till January 31, 2025. The term was ending on 20th December 2024. Let us tell you that Agri futures were banned on 20 December 2021.
Whose futures trading is banned?
Futures trading of paddy (non-Basmati), wheat, gram, mustard and its derivatives, soybean and its derivatives, CPO and moong was banned.
Palm prices reduced!
A huge fall in prices is being seen in the international market. The price in Malaysia has come below 4450 ringgit. The price has fallen by about 800 ringgit from a 2.5-year high. The price reached 5195 ringgit on 11 November 2024. Prices were 700 ringgit above 2024 lows. Prices have fallen by about 2.50% in 1 week, 15% in 1 month. Despite the decline, palm is still costlier than other oils.
What do market experts say
Sunwin Group CEO Sandeep Bajoria Says that the government should soon remove the ban on Agri futures. With the removal of the ban, participation in the commodity will increase. Earlier, the import of palm in India was 90-95 lakh tonnes annually, but now due to increase in prices, the import of palm will become 70-75 lakh tonnes. Due to low prices, soybean import may increase to 50 lakh tonnes. The duty difference between CPO and RBD palmolein should be increased. There should be a difference of 15-20% in duty.
He further said that duty should be increased to promote refined oil industry. Oilseed production will increase due to reduction in duty difference. There should be a difference of 15-20% in duty.
IVPA President Sudhakar Desai It is said that if the ban on commodity futures is lifted then the industry will benefit. Government should make policies for the long term. Industry and farmers face problems due to frequent changes in policies. There is difficulty in deciding the price. A soybean bean is $100 cheaper than a palm one. The demand for palm has fallen sharply due to rising prices. Due to rise in prices the demand for palm has halved.
He further said that the price of palm should come at par with that of soybean. The demand for palm oil as biofuel is increasing. The government should take decisions keeping in mind the interests of the industry. Duty on import of RBD paloni should be increased. Import duty should be increased to 26%. The industry should also get GST refund. Oilseed cultivation should be increased in the country.
AFTA General Secretary Sunil Baldeva Said that the market was assuming that the government could lift the ban. The government maintains 40% stock of pulses through NAFED. The prices of agri commodities are not decided by the market or traders. The option of hedging is not currently available to the industry. Government should impose duty on pulses less than MSP in the budget. The government should take steps to stabilize the prices of pulses.