FPOs in MP holding soyabean stock hoping govt lifts ban on futures & options trade

Updated: Nov 27 2022 5:39PM

Ujjain, Nov 27 (PTI) The ban on futures and option trade has left soyabean farmers in Madhya Pradesh associated with farmer producer organisations (FPOs) in lurch as they are forced to sell their produce in local mandis, to traders and nearby processing plants at "whatever price they quote" in the absence of an efficient price discovery process.

With a big push given for setting up of 10,000 FPOs by the central government, about 1,200-odd FPOs have emerged in Madhya Pradesh alone, the home state of Union Agriculture Minister Narendra Singh Tomar. Madhya Pradesh is the leading soybean producing state with over 40 per cent share in the country's total production of around 13 million tonnes.

Around 60 FPOs from the state are registered on the NCDEX platform and some had begun taking advantage of the price discovery mechanism but then the ban on soyabean and chana derivatives along with five more agri-commodities for a year till December 20, 2022, left them in disarray and discouraged.