MCX & MCIC Jointly Organised a Programme at Aizawl on Commodity Futures Market
Aizawl: In view of bringing more and more market participants under the beneficial ambit of commodity futures market, Multi Commodity Exchange of India Ltd (MCX), and Mizoram Chamber of Industries and Commerce (MCIC) organized an educational seminar on commodity futures markets today at Aizawl (Mizoram).
During the programme, the topics such as the benefits of hedging, importance and need for risk management measures, role of commodity futures exchanges, and the regulatory perspective among others were well explained by the experts from MCX. The participants were further explained about the fast-changing economic scenario, which clearly points to a vibrant future for the Indian commodity futures market. The experts further discussed about how the national economies were gradually integrating with global market, calling for the stakeholders to develop a global perspective about the dynamics of international market.
Additionally, the market participants were briefed about price risk management using commodity derivatives which has been gaining ground in India over the last decade, primarily due to the growing need of stakeholders of a large and growing economy to manage risks arising from commodity price volatility.
Emphasizing on the importance of commodity futures market and price risk management tools offered by the commodity exchanges, Mr. Vibhor Tandon, Assistant Vice President-Business Development, MCX said, “The exchange platform enables the market participants to efficiently and effectively hedge their price risk against adverse price movements. At the same time, the exchange is also a platform where the commodity prices discovered are the true reflection of the real prices as the participants on this platform are from across the country and represent all sections of the economy.”
Mr. K. Lalhmingthanga, President, Mizoram Chamber of Industries and Commerce said, “In the current environment where price risk remains to be an integral component 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. Hedging price risk using commodity futures is definitely the way forward in managing price risk and this has been proven time and again.”
“On a separate note, I would request MCX to conduct a feasibility study to include Ginger in its product basket, which is an important agricultural crop, widely grown in Mizoram.”
Mr. Lalhmingthanga thanked MCX officials for conducting such an informative and educational programme for the benefit of traders and other stakeholders in the region.