MCX reduces transaction charges on farm commodities

Written by Press Trust of India | Updated: Feb 27 2014, 09:39am hrs
Following the FMC directive to introduce differential transaction charges, commodity exchange MCX on Wednesday announced a reduction in fees for agri-commodities.

For agri-commodity contracts, MCX has reduced the fee to Rs 0.75 for every Rs 1 lakh of turnover for members generating monthly average daily turnover volume (ADTV) of up to Rs 20 crore, and Rs 0.50 per lakh on incremental turnover above Rs 20 crore, it said.

For non-agri commodities, the exchange has reduced the transaction charges to Rs 2.10 for every Rs one lakh of turnover for members generating ADTV of up to Rs 350 crore and Rs 1.40 per lakh on incremental turnover above Rs 350 crore.

"This move would make trading in agri-commodities more accessible for the farm community and other participants in commodity market ecosystem, and improve overall hedging efficiency. This is an important incremental step towards market inclusion," Manoj Vaish, managing director and chief executive officer, MCX, said.

Earlier, for both agri and non-agri commodities, the exchange used to charge Rs 2.50 for every Rs 1 lakh of turnover for members generating ADTV of up to Rs 250 crore, Rs 1.25 per lakh on incremental turnover above Rs 250 crore to Rs 1,000 crore; and Rs 1 per lakh on incremental turnover above Rs. 1,000 crore.