FMC to set up 500 centres

The Forward Markets Commission(FMC) is setting up 500 centres all across India to provide real time information to farmers, said S Sundareshan, chairman of FMC at the fourth international seminar on 'Castor Seed, Castor Oil and Its Value Added Products' held at Rajkot on Saturday.

"To ensure that futures in commodity trading is for the benefit of farmers, we are setting up centres from deep South to North. Even US, which has such a long history of commodity trading is nowhere near India as far as number of commodities is concerned. We started from zero trading three years ago and have reached 120 million dollars," Sundareshan said while adding that the commodity exchanges will cross 400 million dollars in the current fiscal year.

Talking about Castor seeds A R Sharma, president of Solvent Extractors' Association of India (SEA) said that India contributes over 70 per cent of the world requirement of castor oil and earns foreign exchange worth of over Rs 800 crore per annum. Gujarat, he said, contributes over 65 per cent of India's castor seed produce of 8 to 8.5 lakh tonnes annually.

In a video conference Thomas Mielke, Editor of Oil World Publications, ISTA Mielke GmbH from Germany said, the requirement of Brazil for bio-diesel is going to go high in future.

The Brazil market, which is also large supplier of castor besides India and China has gone down by 40 per cent in terms of production, he said.

"India should remain dominant producer or exporter of castor oil and is likely to further gain the market share," he added.

Chinese import requirements are also an important variable to watch, he said. "I don't see much exports from Brazil to Europe this year. India is likely to cover it up."

The president of International Castor Oil Association (ICOA), USA, P H Bolomey said, "ICOA has evolved by spreading its wings to Asia and Europe."

An MoU was signed between Multi-Commodity Exchange and Rajkot Commodity Exchange on this occasion. Jignesh Shah, managing director of MCX said, "Rajkot will go national with this and it won't be long before Rajkot takes over Rotterdam."

Besides, five new trade bodies will be set up shortly, he maintained.

Alok Mitra, general manager (exports), Hindustan Lever Ltd in his presentation said the market is volatile and buyer dominated and should be supplier dominated since India is dominating the castor market.

The demand for castor oil is likely to rise further in countries like Brazil and China, he said.

Atul Chaturvedi, President (Agro), Adani Exports Ltd said, "The target plus scheme is the single most factor that has checked the prices of castor oil."

Speculations were also laid that the price of castor will rise in international market by the month of May.

Tulsibhai Tanna, director Gold Crest Exports said if the market is not to be volatile we all should not be here.

While talking to Business Standard, Bolomey said, "Exports for India will rise in long term but I do not foresee it in short term."