Appeal to Reinstate Futures Trading in Oilseeds and Edible Oil Derivatives

We, the undersigned stakeholders—representing Farmer Producer Organisations (FPOs), oilseed processors, millers, traders, cooperatives, institutional buyers, industry associations, market experts, and value chain partners—gathered under the banner of #VoiceForOil&Oilseeds at the National Stakeholder Roundtable in Delhi to raise a united and urgent concern.

The suspension of futures trading in key oilseeds and their derivatives has disrupted market linkages for the entire value chain.

Our Shared Concerns

1. Price Discovery Disrupted:
   

   The suspension has taken away a regulated platform that offered transparent price signals. Farmers and FPOs now lack reliable benchmarks to plan sowing, sales, and procurement.

2. Market Linkage Breakdown for FPOs & Smallholders:
   

   Futures markets had enabled thousands of smallholders and FPOs to access fair pricing and manage volatility. Its absence has broken a vital connection to formal markets.

3. No tools for Price Risk Management:
   

   In a volatile global and domestic environment, futures contracts were essential for hedging and planning. Without them, processors and traders are exposed to unpredictable price swings.

4. Set Back to Self-reliance in Edible Oil:
   

   At a time when India is striving for Atmanirbharta (self-reliance) in edible oils, curtailing market-based price signals and tools is counterproductive to production planning and private investment in oilseed farming and processing.

5. Disturbances on revival of Informal & Speculative Channels:
   

   In the absence of regulated markets, informal and opaque channels are filling the vacuum, leading to speculation, misinformation, and higher risks for all stakeholders.

Our Appeal

In view of the above concerns, we urge the Government of India and the Securities and Exchange Board of India (SEBI) to:

1. Reinstate trading in suspended oil and oilseeds derivative contracts on regulated exchanges.
2. Encourage data-driven and transparent regulatory approaches that safeguard genuine hedging and trading activity while addressing concerns in a targeted and balanced manner.
3. Engage in continuous dialogue with farmer groups, industry associations, and exchanges to ensure alignment between market stability and growth goals.

Our Shared Commitment

As stakeholders of India’s oilseeds economy, we are committed to:

1. Enhancing farmer incomes through better market access and fair pricing
2. Strengthening domestic production and reducing import dependence
3. Supporting transparent, regulated, and inclusive commodity markets
4. Promoting market driven instruments for effective hedge against price risk

We believe that with responsive policy, transparent regulation, and collective will, India can build a resilient and globally competitive oilseeds ecosystem.

To be Submitted to

1. Hon’ble Minister of Agriculture & Farmers’ Welfare
2. Hon’ble Minister of Finance

1. Hon’ble Minister of Commerce & Industry
2. Chairperson, SEBI

JOINT DECLARATION FORM

By Stakeholders of the Oilseeds and Edible Oils Ecosystem #VoiceForOil&Oilseeds

तिलहन और वनस्पति तेल वायदा व्यापार को फिर से शुरू करने की अपील

Appeal to Reinstate Futures Trading in Oilseeds and Edible Oil Derivatives