Multi Commodity Exchange of India Ltd (MCX) on its continuous journey to educate the participants of the commodity ecosystem about the benefits of effective risk management, it organized a commodity awareness programme at Raiganj, West Bengal on Friday, May 29, 2015. It was organized in association with the Forward Markets Commission (FMC), and West Dinajpur Chamber of Commerce.
The programme was aimed at educating the market participants about the benefits of trading on an exchange platform and to impart accurate and relevant information about the commodity futures market.
The experts from MCX explained in detail about the commodity futures market, which is a well-accepted and widely participated institutional innovation to help stakeholders discover future prices and to better manage risks to their businesses or economic well-being arising out of commodity price movements.
Further on, the experts explained about the need and importance of commodity markets in India. They threw light on the product basket, and the different variants of futures contracts in bullion, base metals, energy, and agri segment, offered by the exchange, thereby enabling a large number of market participants manage their risks.
Mr. Dungarmal Agarwal, President, West Dinajpur Chamber of Commerce said, “The importance of commodity derivatives market in India is increasing, with its economy becoming more aligned with the global economy. The direct and indirect value chain participants of varied commodities are getting increasingly exposed to the price risks which are inherent in international trade, and are also endemic to domestic commodity trade. Under such environments where price risks remain integral components of commodity trades, the Indian commodity exchanges such as MCX have been playing an important role in helping the market participants proactively manage their risk exposures and boost their business competitiveness.”