The Hindu Business Line : JRG launches online commodity trading at Sulthan Bathery

JRG, one of the leading brokerage houses for share and commodity trading, has commenced its online commodity futures trading from Sulthan Bathery on Tuesday, coinciding with the first anniversary of online commodity futures trading in Kerala.

The full-fledged commodity trading centre at Sulthan Bathery is the 54th centre of JRG in the State and the company is planning to start commodities futures trading from Kanpur, Delhi, Meerut and Moradabad by April 30, said Mr Giby Mathew, Managing Director of JRG Wealth Management Ltd.

The commencement of online commodity futures trading system has created a new system in the commodity market giving the opportunity to farmers, businessmen and dealers to enter into the commodity market from each and every corner of the country. The system has also helped regularise the price of commodities, he said.

The trading public has already showed their acceptance of the online commodity futures trading system by trading in 47 commodities for the past one year. The company started commodity trading last year by providing online trading facilities to the Indian Rubber Federation, Kottyam. It has appointed experts at their centres to give adequate advice and also to educate the agricultural growers and traders, Mr Mathew said.

Inaugurating the centre, Mr Kailash Gupta, Managing Director, National Multi-Commodity Exchange of India Ltd, said that the exchange is in the process of introducing one by one various improvements to make the trading process more transparent.

The initial apprehension among the farming community on futures trading has changed and there was encouraging response, especially from Kerala as the State is leading in the futures trading of rubber and pepper. At present 56 commodities are being traded in the exchange and extensive research is going on to introduce more items such as turmeric, ginger and vanilla, he said.

According to Mr Gupta, the exchange could reduce the transaction costs considerably once it is able to implement demat system and resolve the sales tax issues. By next year, he predicted that the volume of the exchange would increase by 1.5 times. Referring to the introduction of options, he said, "Futures without options is dance without music."

NMCE has already initiated discussions with the Union Government to promulgate an ordinance on options in the commodities futures trading, Mr Gupta said.

Mr Regi Jacob, Chairman of JRG, said that the company would extend support to the traditional experience of farmers in the cultivation of perennial plantation crops such as coffee, tea, pepper, cardamom, coconut and spices at Bathery. The vision of the company is to become a financial supermarket to provide all types of financial services to its clients so that they need not go from place to place for their investment needs.

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