India to set up soyabean futures exchange

INDIA plans to set up a domestic futures exchange for soyabeans, the countrys third largest oilseeds crop after groundnut and rapeseed/mustard.

The federal Government has given the green light for the Soyabean Processors Association to start trading futures. It is expected to take six months to draw up the contracts and regulations and build the infrastructure, including a clearing house.

The contracts and trading contracts will need to be approved by the Forward Markets Commission.

Initially, the market will be in soyabeans. Futures trading in groundnut and rapeseed/mustard is expected to begin next year.

Soyabean is Indias fastest expanding oilseed in terms of land coverage and production. There are currently 6.2 million hectares (15.3m acres) under the crop.

This seasons crop is expected to be excellent. Good rains from the monsoon and the cultivation of additional land for soyabeans mean there is likely to be a record crop of nearly 7m tonnes.

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  Financial Times 02/09/98 page 30