MOPA Urges Government to Remove Stock Limit on Oilseeds, Permit Futures Trading

The representation was given to Finance Minister Sitharaman by the office bearers of MOPA which included Anil Chatar, Suresh Nagpal, and Hemant Goyal.

In the representation to the Minister, the MOPA said that in response to the ‘Atma Nirbhar' call of Prime Minister Narendra Modi, the farmers have toiled hard to increase the production of oilseeds following which the import of edible oil came down to 135 lakh tonnes from 150 lakh tonnes.

In the representation to the Finance Minister, MOPA pointed out that in the last 4 months, the prices of edible oil have fallen by 40-45% and are now almost at a level prior to the Covid pandemic. As a result, the price of Soyabean seeds, which was selling at around Rs 9500 a quintal last year, is now selling at Rs 4500 a quintal.

The situation is similar with mustard. It is currently selling at Rs 6,000 a quintal vis-à-vis Rs 8,500 a quintal last year. This is creating hardship for farmers and they are not eager for the sowing of oilseeds.

In view of the difficulties being faced by the farmers, the MOPA urged the Finance Minister to take necessary action and prevent the oilseed growers to shift to other crops.

Moreover, it added, the stock limits imposed by the government on edible oil and oilseeds are adding to the woes of the edible oils sector. Several factories have closed down in the country, creating job losses.

The government, MOPA in its representation said, should immediately remove the stock limit on oilseeds and permit futures trading in Mustard, Soyabean, Soya oil, and Crude Palm oil.

It is pertinent here to mention that the stock limit for oil & oilseeds was imposed in the month of February 2022 for a couple of months and later on, it was extended till December 2022.

MOPA also pointed out that due to the ban on futures trading, the industry has not been able to manage risks properly, which has resulted in losses. Moreover, in absence of the future trading, farmers are also in dilemma about the prices their produce will fetch and the scenario is similar with customers about the prices they need to pay.

“Globally, Futures trading continues even during the most adverse of situations and is never banned as it works as a bridge between farmers and customers,” MOPA pointed out in its representation.

Thus, it called for the resumption of the Futures trading of oil & oilseeds at the earliest.