MUMBAI (Commodity Online): It is time for another trade body to fire a salvo at Futures trading. The Solvent Extractors’ Association(SEA) has blamed Futures trading for higher oil meal prices.

SEA has shot a letter to Finance Minister Pranab Mukherjee, Commerce and Industry Minister Anand Sharma and Agriculture Minister Sharad Pawar asking for stringent regulation of Futures trading to curb speculation.

SEA President Ashok Sethia said unavailability of stocks for crushing – on account of some market players holding stocks – has put pressure on prices resulting in lower exports, at least 15 lakh tonnes lower compared to 55 lakh tonnes last year.

Another reason why oil meal exports decline is due to higher quality offered by US, Argentina and Brazil. Soybean and rapeseed accounts for India’s volume business and Brazil and Argentina offers both at competitive prices.

Economists differ on the demand saying market dynamics should play the pivotal role in prices. “When there is a better quality available at a better price, why should India cry foul. It is simple economics,” said Ashok Mehra, Mumbai based agriculture expert.

“What SEA is asking for is protectionist policy. If market turn against us, please save us and if the markets favour us, get lost,” he opined.

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