NBOT eyes palm oil trading

India's only soya commodity exchange, National Board of Trade (NBOT), at Indore is likely to start futures trade in palm oil by next month.

NBOT will also start futures in chick peas, gram and cotton seed cake. At present, it operates in soyaoil futures and mustard seeds.

Speaking to Business Standard, a top official said NBOT had already obtained permission from Forward Market Commission (FMC) and government approvals for trading in palm oil futures.

"It is likely to start by next month - preparations are going on," Jeya Kumar, executive director of NBOT, said. NBOT chairman Kailash Shahra was not available for comment.

NBOT would like to increase traded volumes. It may apply for permission to launch futures trades in chickpeas, cottonseed and gram later.

NBOT recorded trade of Rs 350 crore daily. The figure was expected to double in a year. At present, traded volumes were at 70,000-80,000 tonnes and with new commodities it will go up," Kumar said.

Soyaoil accounted for almost 70 per cent of the total commodities traded at present.

NBOT, earlier known as Soyabean Board of Trade, had applied for permission to trade in more commodities. As it did not have a proper warehouse receipt system, it was denied permission to trade in bullion and sugar, among other commodities.

NBOT sources the exchange would like to launch online trading soon. Traded volumes were expected to exceed Rs 800 crore daily thereafter.