InfoSAWIT, MUMBAI – National Commodity and Derivatives Exchange India would immediately launch sunflower futures contract on 12 November 2023 to provide assessment protection for importers when its price is in fluctuation.
India is the biggest sunflower oil importer in the world that reached up to 90%. 2,5 to 3 million metric tons were imported from Russia, Ukraine, Rumania and Bulgaria.
Managing Director NCDEX, Arun Raste said the vegetable oil imports keep increasing every year. There is no other thing for the importers to protect themselves. “These industries need sunflower oil futures contract to face the price volatility in the globe,” he said, as quoted from Reuters.
The exchange in the beginning would launch a three month – contract with delivery option in Chennai in southern state of Tamil Nadu. Sunflower oil is mostly more expensive than palm oil, and soyoil but many southern states are fond of it.
Meanwhile, President of International Sunflower Oil Association, Sandeep Bajoria said that sunflower oil contract could trigger other industries to participate in big numbers because many importers do not have many options to get assessment protection to the risks on other vegetable oils.
Last month, India extended to postpone soybean, soyoil, and crude palm oil derivative contract trade for the second time until the late of 2024 because the country wants to control on food inflation.
The South Asian country would fulfill hardly two third of vegetable oil needs from the import which spent about almost US$ 20,8 billion in 2022/23 which ended on 31 March. (T2)