The sources told The Financial Express that there was a proposal to utilise the services of FCCC, however, the board of Cofei was unable to decide in its favour as the proposal lacked required specifications and clarity.

FCCC is a division of Indian Pepper and Spices Trading Association and runs three banks in Kerala.

Meanwhile, Cofei seemed to have almost decided on Canara Bank for the slot of the institutional clearing member (ICM) after the latter held a series of discussions with Cofei. Recently, the bank made a presentation at Cofei explaining its strength at length. However, a final sitting was scheduled to be held soon, Cofei sources said.

``After the final session, we will recommend the (Canara) bank to the RBI,'' Cofei sources said. Arecent report carried in a section of the media on Cofei finalising the ICM was incorrect, the sources maintained. Canara Bank has already submitted an application seeking permission to work with Cofei as its ICM.

On raw coffee trading at Cofei, the sources said a committee constituted to study the issue had reached a consensus. The committee (on raw coffee trading and trading of varieties other than Plantation A, Robusta Cherry AB) has recommended fixing certain parameters and guidelines to be circulated within the industry to gather views before a final recommendation is made.

The coffee industry has mooted the formation of a federation of commodities exchanges that would work as a common platform for all commodity exchanges, the source said. The idea was initially floated at a seminar on certified warehousing systems held in Mumbai during the last week of June.

A common body would enable interaction between the commodity exchanges in the country and help contain arbitration and speculative activity.It would also help bring the industry's problems to the notice of government.

Currently, the country has 6 commodity exchanges for jute (Calcutta), pepper (domestic and international in Kochi), oil and oilseeds, cotton (both in Mumbai), soya (Indore) and coffee (Bangalore).

A few years ago, the country had 18 commodity exchanges but many of them were forced to down shutters during the last three years as the trading community (comprising independent operators) remained wary of institutionalised operations.

According to Cofei sources, the design and production of software meant for certified warehouses was almost ready to be installed at 14 coffee warehouses spread in Karnataka, Kerala and Tamil Nadu. The software was expected to function as an information and data link between Cofei and the warehouses.

Besides enabling smooth and uniform transfer of data, it will also take care of receipts, deposits, despatch and stock details.