MCX eyes agri commodities segment with a slew of new products

The Multi Commodities Exchange (MCX) has set its sights on strengthening its position in the agri commodities segment and consolidating its presence in the non-agri segment. It has plans to introduce many products that are not available for derivatives trading so far. MCX Managing Director and Chief Executive Officer Mrugank Paranjape said: “We plan to strengthen our position in the agri commodities space to involve even farmers and launch futures in some commodities for which we see good scope. Some of them are being launched for the first time. The products include robusta coffee, whose exports are rising. The MCX found a large number of people interested in hedging the crop or consumers and exporters looking for hedging coffee procurement price risks with the expansion of retail coffee chains. Financial Astrology Tips

 
The exchange is said to be exploring futures in tea but the issue is that there are several varieties and grades and standardising contracts is not so easy. The focus on agri commodities is being sharpened following the government’s plan to double the farmers’ income in the next five years. The MCX, with its dominant position in the non-agri segment, saw some of its agri contracts like cotton, menthe and crude palm oil doing well. In cotton, an exchange official said, Arvind Mill, Gill & co, largest ginner Manjit Mill, multinational players like Glencore and others have started hedging and more leading Indian cotton textile mills are joining. The MCX market share in the agri segment has also improved of late, though it is still far from being the largest agri exchange. Black pepper, RBD Palmolin, crude degum, and rubber are other agri commodities where the exchange is waiting for Sebi’s formal approval. In rubber futures, the Ahmedabad-based National Multi Commodities Exchange has a very good market share and many farmers and hedgers are participating on the exchange. Astrology and Numerology Trading Tips