Recently, commodity markets regulator Forward Markets Commission (FMC) suspended soyoil futures. This is significant as the chance of trading volume shifting to palm oil becomes bright.
The exchange has fixed the trading lot and initial margin at 10 tonnes and 5 per cent, respectively, for ex-Kandla crude palm oil. Delivery lot has also been fixed at 10 tonnes.
India imported 5.3 million tonnes of palm oil and its products in 2007. This is estimated to go up to 5.8 million tonnes in 2008 and 6.5 million tonnes in 2009.
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 ranks third in the world for palm oil consumption. Much growth in edible oil consumption in the country has come from imported palm and soybean oils.
Non-traditional imported oils now account for nearly half of oil consumption in the country, filling up the gap between increasing demand and static domestic oilseed production.
