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Our Bureau

Has permission to continue trading from 10 am to 11 pm

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Bangalore Jan.29 The Multi Commodity Exchange of India Ltd (MCX) on Monday launched the coffee futures trading linked to Euronext-London International Finance Futures Exchange (LIFFE). In a major advantage, permission had been granted for continuing the trading from 10 in the morning to 11.55 at night, which will enable traders cover their price risk exposure at the same time as the others in the global market.

Addressing a press conference here on Monday, Mr Joseph Massey, Deputy Managing Director, MCX India Ltd, said the futures trading would be in robusta coffee, the first farm commodity to offer an international price settAs per the contract specifications, the basis variety is robusta while the basis price would be Euronext-LIFFE robusta coffee price converted into Indian rupee with RBI reference rate of the date.

The trading would be on MCX platform during domestic global session up to 11.55 pm, as most of the Indian coffee stakeholders hedge in the international market, Mr Massey said.

Month schedule

Initially, robusta futures would be available for the months of March, May and July this year. The contracts would be bi - monthly. The September, November and January contracts would be launched subsequently.

Delivery centres would be located at the warehouses of MCX at Kushalnagar, Chickmaglur and Hassan in Karnataka, and Kalpetta in Kerala, Mr Massey said. Considering that India was a coffee exporting country, it needed hedging instruments linked to international price settlement mechanism, he added.

Mr Lamon Rutten, Joint Managing Director, MCX, said the exchange would help the stakeholders in the industry to minimise the impact of high volatility in the trade due to demand-supply gaps caused by vagaries of weather and sharp price variations.

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