The Hindu Business Line : Cargill seeks FIPB nod for trading in futures contracts

WITH India gearing up to fully integrate its commodity markets and allowing more commodities under the futures and options in the 19 operating commodity exchanges across the country, Cargill India, the wholly-owned subsidiary of the US-based Cargill Inc, has moved the Foreign Investment Promotion Board (FIPB) seeking permission to trade in futures contracts, options and derivatives.

Earlier, the Government had refused to permit the company to trade in futures and contracts on the Indian commodity exchanges. The company was, however, permitted to export agricultural commodities from India and import fertilisers, except for canalised items, for local stocking and sale to major bulk consumers.

Now, the company has informed the Government that it proposes to trade in futures contracts, options and derivatives on various recognised domestic commodity exchanges. The company has also informed that it has already made the required investments in marine and port infrastructure to facilitate agriculture commodity exports and fertiliser imports.

With the infrastructure in place, the company said that it actually planned to trade on such commodity exchanges primarily for hedging physical commodity positions and also as a trade activity.

Cargill India is a wholly-owned subsidiary of Cargill Mauritius Ltd, which in turn is a wholly-owned subsidiary of Cargill Asia Pacific Ltd, which is fully owned by Cargill Inc.

Cargill Inc is the largest privately held US company, engaged in trading of agricultural, food, financial and industrial products and services with 97,000 employees spread across 59 countries worldwide.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Cargill seeks FIPB nod for trading in futures contracts

Is domestic tea consumption falling?

Malaysian palm oil may head lower

NDDB joint ventures against divestment policy: Kurien