The meeting comes at a time when the commexes are eagerly awaiting the government's announcement of comexes that will be allowed to take up trading in more than one commodity currently permitted. The commodity futures trading regulator Forward Markets Commission (FMC) had conducted an indepth review of around 25 applicants for the purpose in mid-April this year. The FMC has forwarded its recommendations to the government. Each of these exchanges have contributed Rs 10,000 each towards funding of initial expenses for the proposed NCE. East India Cotton Association (EICA) president Suresh Kotak has been appointed convenor of the proposed meeting.

Chiefs of several comexes had met in Mumbai in April to deliberate on the subject. Even as the first meeting was inconclussive, the participants had agreed to meet once againafter the Dipavali festival. The fresh attempt to discuss the subject of NCE appears to be the last ditch effort of the comex chiefs to quell the threat of the government's move to rope in the financial institutions and other watchdogs like the Reserve Bank of India, Securities and Exchange Board of India and the National Stock Exchange.

The meeting was held earlier this month in Mumbai at the behest of the FMC. Even as one of the observers feel there is no serious move on either side, Consumer Affairs Minister Santa Kumar is scheduled to visit the Bombay Oilseeds and Oils Exchange, Vashi, Navi Mumbai and the FMC today.

The issue of the proposed multicommodities exchange appears to have been divided in two camps-the government on the one side and the comexes on the other. Both seem to be bidding time as regards funding of the proposed NCE. While the "rich members of poor comexes" are unwilling to chip in the required amount of around Rs 1.5 crore for building online trading infrastructure, the governmentis trying to woo the financial institutions to take up the gauntlet.

"If we are unable to take up the challenge this time and come up with a concrete proposal to set up the proposed multicommodity exchange, it will be suicidal for all of the existing comexes", said an office bearer of the BOOE. "Whether we like it or not, arrival of the government's sponsored FIs on the scene will rob the comexes and their members of their independence".

Two major impedements that are hampering the comexes efforts to set up the proposed multicommodities exchange. One, the thriving illegal commodity futures trading in centres like Mumbai (Maharashtra), Amhedabad and Bhabhar in Gujarat and Punjab among others. The FMC is said to be active, but weak, in its once-a-month efforts to nab the "culprits" at some of these centres.

The police officers, during their regular visits to illegal commodity trading centres in Gujarat are conviniently "palmed off" by the trading community there, which makes the FMC's effortsineffective. But the trading and settlement mechanism at these illegal trading centres are so comfortable that even big corporate players including multinationals, exporters and traders find it convinient to trade in these centres and not on the legal comexes. Office bearers of some of these comexesnwork hand in glove with punters and are known to often carve out deals to their advantage leaving serious players in a lurch. Two, members of the comexes, uncomfortable as they are with transparency, are even not too sure as to how would the proposed common platform for multicommodity exchange will serve their purpose of improving the faltering trade volumes. Among others, this issue was raised at the meeting held in Mumbai earlier this year.

Collectively, both these issues have contributed to the poor volumes on the comexes, which in turn has resulted in total lack of confindence among the serious players. Leading foreign banks like ABN Amro and Rabo Bank among others are fearing to contribute funds for therequired to set up the multi commodity exchange.