The Hindu Business Line : NMCE knowledge management centre in Kochi soon

Kochi Nov. 21 With the objective of educating farmers on commodity markets, the National Multi Commodity Exchange of India (NMCE) is considering setting up a Knowledge Management Centre in Kochi.

The centre is expected to become operational by the beginning of the next fiscal and would impart a perfect learning programme on commodity markets.

The learning programme designed “to dispel misgivings on futures trade and impart correct knowledge of commodity markets to the farmers of the country,” a press release issued here has said.

The exchange is also planning an exclusive academy, in association with a leading international business school, for commodity market with the intention of producing ‘professionals of excellence in commodity management and trade.’

For this, the exchange has already roped in professionals with proven prominence in the filed of commodity trading.

Dispel ignorance

Mr Kailash Gupta, Managing Director of the exchange said: “To a certain extent, ignorance has prompted many to advocate against futures trade.

Once they are properly educated on the benefits of futures trade, these people will realise that their apprehensions are unfounded. Through our learning process we intend to impart correct knowledge on commodity futures.”

Explaining the benefits of futures trade on agricultural products he said, “by selling futures of his commodity the producer is assured that he is selling his commodity at a particular price on a particular date.

Since the future selling price is clear the market manipulators can’t compel him into panic selling. Similarly, a trader through futures contract can ensure that he is protected against adverse price fluctuations.”

Futures trade is also seen as highly advantageous to the exporters, since it gives a clue of the likely future price which will help him in quoting a realistic price for his export consignments.

And once these farmers become accustomed to futures trading they will learn the process of price discovery and market manipulators can hardly deceive them.