For better price through online trading and accessing information on various commodities, two major trade associations in Delhi, representing bullion and cereal trade, have signed MoUs with Multi Commodity Exchange (MCX).
More than 600 traders from Delhi Bullion Jewellers Welfare Associations (DBJWA) and Dal and Besan Millers Association (DBMA) will use the MCX platform to conduct trading and hedging.
“The alliance with MCX would prepare us in dealing with volatility in the commodities markets about which we rarely get information as we operate at the local level,” Prem Sharma, general secretary, DBJWA told FE. According to Sharma, the MCX platform will ensure that the bullion dealers could get both prices and take positions till late in the evening as the exchange operate till late, unlike financial institutions.
Although futures trading on various cereals like chana dal, urad dal etc have been suspended till November 30, the traders feel that after the government lifts the suspension on futures trading, the alliance would help traders and processors discover real prices. “We will access the online platform for not only price discovery but also for accessing crop information and international prices,” Ashok Gupta, president, DBMA said.
At the domestic level, MCX has tied up with bodies like Bombay Bullion Association, Bombay Metal Exchange, India Pepper & Spice Trade Association, Pulses Importers Association (PIA), Solvent Extractors’ Association of India etc. At the global front, the exchange has alliance with New York Mercantile Exchange, Euronext, London Metal Exchange. MCX controls more than 80% of the country’s commodity trading market and has an average daily turnover of Rs 15,000 crore.