Indian soya oil futures fell on Monday after the government suspended for three months tighter rules for import of genetically modified products.
Wheat fell marginally on expectation the government would soon float a tender for import of 3 million tonnes of grains to augment stocks while sugar was firm on summer demand.
The May soyaoil contract at the National Commodities and Derivatives Exchange (NCDEX) was down 1.15 rupees at 411.40 per 10 kg, while the June contract fell 0.40 rupees to 418.50.
"Long-term imports of soyaoil will go up with the clarification on genetically modified soyaoil imports," said one Indore-based trader. "Supplies will ease and prices will come down."
India has suspended for three months a new rule that required imports of genetically modified food products, including soyaoil, to be cleared by a government panel.
The director general of foreign trade said in a notification last week the condition imposed under a new export-import policy last month stands suspended until July 7.
Wheat prices fell marginally on market talk the government would soon float a tender for imports of 3 million tonnes to tide over stretched government reserve stocks.
"Futures prices have come down a bit but physical prices are high and the market will remain firm until the imports come and add to stocks," said one trader.
The June wheat contract n the NCDEX eased 1 rupee to 922.80. The June wheat contract on the Multi Commodity Exchange dropped 1.40 rupees to 930.
Facing a shortfall in annual output and weak buffer stocks, the government decided in March to import wheat for the first time in six years.
Comments
Comments are closed.