Itanagar: A comprehensive programme aimed at enabling the commodity value chain participants understand the ways in which they can make use of futures market to manage their price risks, Multi Commodity Exchange of India Ltd (MCX), today organized an awareness programme in association with Arunachal Chamber of Commerce and Industries (ACCI) at Itanagar, Arunachal Pradesh.
During the programme, experts from MCX elaborated about the functioning of Commodity Exchanges, and the various aspects of commodities trading. They also discussed about the benefits of commodity futures for effective price risk management. Further on, they explained about the need and importance of commodity markets in India. The experts 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. Vibhor Tandon, Assistant Vice President-Business Development, MCX said, MCX has enabled thousands of commodity value chain participants manage their price exposure in an efficient manner, through futures contracts. Commodity futures market provides an almost costless mechanism for price risk management because they bring together various segments of the market place with differing objectives and price outlooks.”
“Moreover, MCX meets international best practice standards in terms of its technology, its risk management systems and its self-regulatory mechanisms”, he further stated.
Mr. Lala Techi, President, ACCI said, “In an uncertain world marked by continuous volatility in commodity prices if the commodity stakeholders wish to sustain and grow, hedging risks through the transparent platform of a commodity derivative exchange would be an ideal and sensible proposition. Apart from enabling the market participants to manage their risks effectively, hedging could be a key differentiator in an intensely competitive market.”
MCX has been taking various initiatives to systematically develop markets through incessant innovation, education and research, focussed on spreading awareness on the modern trading mechanisms facilitated by commodity exchanges.