In order to educate various stakeholders of the commodity value chain, Multi Commodity Exchange of India Ltd (MCX), and Forward Markets Commission (FMC), conducted a series of awareness programmes on commodity futures market at Vadodara and Surat. These programmes focused on the benefits of trading in the commodity futures markets and also helped debunk the many myths related it.
The programmes at Surat were organised in association with Surat Jewellers Association, and Varacha Road Jewellers Association; and Katargam Industrial Estate Shed Holders Association respectively. Additionally, another programme held at Vadodara was organised in association with Ghadiyali Pole – Karodiya Pole Jewellers Association.
The experts during the sessions provided an overview about the functioning of the commodity futures market to the participants. They also spoke about the wide ranged product basket offered by the Exchange in bullion, base metals, energy, and agri segments. Further on, they discussed the risks and volatility associated with commodity prices and spoke in-depth about the use of an exchange platform such as MCX to manage these risks and volatility. The programme also focused on significant aspects such as introduction to commodity derivatives, benefits of futures trading and role of commodity futures exchanges, importance of price discovery and price risk management, and regulatory perspective, among others.
The experts from MCX, spoke on various aspects of commodities trading in India. Ayub Malek, Senior Manager-Business Development, MCX, while explaining the benefits of commodity futures markets to the audience said, “Commodity Price Risk management is an essential part of the business which helps in increasing shareholder value as well as keeping the business margins intact. Therefore, by participating on the derivatives exchange such as MCX, the market participants can hedge their price risk and mitigate losses associated with price uncertainties.”
While thanking FMC and MCX for organizing the awareness programme at Vadodara, Shri Kanubhai Soni, President, Ghadiyali Pole – Karodiya Pole Jewellers Association said, “Such programmes encourage more and more participants to benefit from the price discovery and price risk management function performed by the commodity exchanges.”
“It was an excellent opportunity for us to interact with the experts, and understand in detail about the commodity futures. Also, amid increasing volatility in the commodity market, it is imperative for bullion stakeholders like us to hedge against uncertainties in the price movements of Gold and Silver”, stated Mr. Chirag Kheemanee, Treasurer, Varacha Road Jewellers Association.
Tusharbhai Choksi, President, Surat Jewellers Association said, “The experts educated the participants about the various innovative futures contracts in the bullion segment offered by the commodity exchanges that are useful risk management tools.
Mr. Paresh Lapshiwala, President, Katargam Industrial Estate Shed Holders Association said, “It was interesting to know that MCX offers futures trading in base metals benchmarked to international prices, and the contracts are traded in Indian rupee, which would also help us cover the currency risk.
About MCX:
Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various Indian and International commodity exchanges and business associations. 
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