Shetkari Sanghatana (SS), the farmers’ body in Maharashtra, has written to SEBI that it should not succumb to pressure from soyabean processors to ban futures and options trading in soyabean on NCDEX.

“The processors lobby is saying that soyabean prices have risen to ₹7,000/quintal plus due to speculation and not the demand-supply situation, and justifies the ban on futures,” said SS President Anil Ghanwat in a press statement. He added that a ban on futures trading of soyabean will pull down the prices drastically. This will turn farmers away from producing oilseeds in future, said Ghanwat.

Soyabean futures on NCDEX on fire, rule 40% higher than CBOT

According to SS, sowing of soyabean in this season was the same as last year or 5 per cent more. The early sown soyabean production was normal, but a large part of the late crop was severely damaged due to unseasonal rains in October.

“Our soyabean is non-GMO, so in Covid-19 situation demand for non-GMO soyameal is huge in the US, Europe and Asia. Soyabean prices have risen in America due to sharp rise in demand from China, and hence only Indian prices are not high,” the SS stated.

SEA seeks SEBI’s intervention on NCDEX soya futures trend

According to SS, even if soyabean prices are higher by 60 per cent from last year, it is only compensating the losses from lower yield to farmers and not giving super-profits. “If futures trading is banned, it will create panic and prices will fall drastically and farmers will be at loss despite high demand for their produce. FPOs and farmers are already facing high input prices and inflation in all other goods they need to maintain their families” said SS.

Related Topics
comment COMMENT NOW