The launch is significant as the commodity markets regulator the Forward Markets Commission (FMC) suspended soy oil futures from the commodity exchanges recently thereby, chances of volume shifting in palm oil.
The exchange has fixed the trading lot and initial margin at 10 metric tonne and 5 per cent respectively of ex-Kandla crude palm oil. Delivery lot is also fixed at 10 metric tonne.
India imported 5.3 million tonne of palm oil and its products in 2007 which is estimated to go up to 5.8 million tonne in 2008 and 6.5 million tonne in 2009.
In 2007-08, world may turn out around 411.22 lakh tonne of palm oil. Malaysia and Indonesia are the largest palm oil producers in the world.
Palm and soybean oils have emerged as major edible oils accounting for 36 per cent and 23 per cent of total edible oils consumption respectively.
India stands third in the world for palm oil consumption. Much growth in edible oil consumption has come from imported palm and soybean oils in India. Non-traditional imported oils now account for about half of the oil consumed in India, filling up the gap between increasing demand and static domestic oilseed production.
