Indore: The Soyabean Processors Association has asked the Securities and Exchange of Board of India (SEBI) to suspend futures trading of soybean at NCDEX immediately.
Davish Jain, Chairman of SOPA made this demand in a letter to market regulator SEBI. Jain also requested raising margin to 25 per cent so that frivolous speculators stay away from the exchange.
‘We would like to bring to the kind attention of SEBI that excessive speculation is taking place in the Soybean and Soy Oil Contract on NCDEX for the last 15 days. Because of this unwarranted speculation, the complete soya crush industry is unable to procure raw material and sell the finished products.
In the last week, Soybean prices have increased by almost Rs 2500 metric tonne and Soy Oil prices have increased by Rs 2840/MT, because of which, the arrivals have also stopped, as farmers aren't bringing their produce when market prices are increasing every day. The futures contracts, instead of acting as a benchmark price for Spot Markets, have become the spot market disruptors’ Jain said.
He said that such speculation when fresh crop has hardly entered the market will badly hurt the business and the serious traders and processors will fall prey to the practice and harm the soybean industry during the new soybean season. Jain expressed hope that SEBI take the necessary step to curb the rising price of soybean.