Though the volume at just one unit each for August and October futures was low at the price of Rs 365 and Rs 371 per 10 kilograms, respectively, the mood was upbeat.

The global castor futures is being managed at the International Castor Oil Division of BOOE.

In his inaugural address Department of Consumer Affairs secretary Srinivasan informed the exchange officials that the authorities would be closely tracking the castor oil futures trading and also stated that permission to other commodity futures trading depends upon the success of castor oil futures.

He urged the exchange to commence quotes of trades in dollar terms as permitted by the government and RBI to attract the international fraternity. He also asked the exchange officials to start an online trading system as early as possible.

Accepting the fact that the international futures at Kochi was asheer failure he said the government is open to the idea to consider permitting other commodities. But if the exchanges fail to make it successful, the government will have to rethink over permitting futures in other commodities. He also said that commodities not covered under the Essential Commodities Act will be accorded priority as a free market conducive to futures trading would be readily available.

He further said that he was looking towards a day when quotes for commodities at Mumbai are referred by Chicago a few years down the line. India being a vast country with immense potential has the capacity to make a mark on the international trade, he said.

Forward Markets Commission (FMC) chairman Vijay Aggarwal, who was also present at the function, urged the trading community to make castor oil futures a success.

Earlier, BOOE president Navinchandra Shah in his welcome address strongly urged for granting permission to the exchange for trading in all the other oilseeds, oils and oilcakes and also arecognition as a multi-commodity exchange.

He said the exchange is keen to commence futures trading in palmolien as it constitutes over 60 per cent of the country's aggregate vegetable oil import and over 15 per cent of the aggregate oil consumption.

The biggest challenge facing the exchange was the unofficial market where unauthorised futures were being conducted. Players in the grey market are not only subject to an absence of regulatory discipline, margin, daily clearing, capital investment, but also to lack of documentation and non tax compliance.

He reiterated that BOOE is determined to wean players away from the unauthorised deals and bring them into the mainstream of organised futures trading.

For this BOOE will have to show the potential players sufficient business opportunity in the organised sector on reasonably attractive terms. The exchange will have to become a low-cost service provider while maintaining utmost reliability, he said.