Multi Commodity Exchange of India Ltd (MCX) and Forward Markets Commission (FMC) organized a series of commodity awareness programmes across Gujarat—Mandvi, Bhuj, Junagarh, Ahmedabad—during Feb. 7 – Feb. 10. The primary objective of these programmes was to educate the commodity value chain participants about commodity futures market, and the benefits of Hedging.
During the programmes, the experts from MCX explained in detail all the technicalities associated with the working of a commodity exchange. They further highlighted the importance of futures market as tool for price discovery and price risk management. Moreover, they elaborated on the topics such as the benefits of hedging, importance and need for risk management measures, role of commodity futures exchanges, and the regulatory perspective.
Furthermore, another interactive session on ‘hedging bullion price exposures’ was organized at Kalol, by MCX and FMC in association with Kalol Soni Choksi Money Lenders Association for its members, on Thursday, February 12, 2015. The market participants appreciated the interactive session, thereby gaining an insight into the commodity futures market.
While addressing the bullion market participants at Kalol, Ms. Komal Kanzaria, Assistant Vice President, Business Development, MCX said, “The twin functions of the commodity futures market i.e. price risk management and price discovery is fulfilled efficiently by the bullion contracts offered by the Exchamge platform. This enables the bullion stakeholders to insure themselves against the impacts of fluctuations in the underlying bullion prices in the physical market.”
“Since participants of the commodity trading ecosystem still lack adequate awareness about risk management, we are focusing on educating such stakeholders through these awareness programmes about the effective use of an Exchange platform, such as MCX, to manage their price risks.” she further stated.
Shri. Mohanlal Jawaharmal ji, President, Kalol Soni Choksi Money Lenders Association said, “The value chain for gold and silver trading in India includes a large number of bullion stakeholders, including the retail jewellers who are exposed to the vagaries and uncertainties of the physical market. We thank FMC and MCX for undertaking a major exercise to create awareness among these stakeholders to induce them to hedge their price risk on regulated commodity exchanges.”
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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