The Hindu Business Line : MCX to launch red areca nut, garlic, jute sack futures

NEW DELHI: After grabbing a lead position in the futures trading of metals, bullions and energy, commodity exchange MCX is eyeing a major chunk of the agri market with the launch of three more farm products within a month.

“We will be launching futures trading in red areca nut, garlic and jute sacking within a month. We have already got permission from the regulator Forward Markets Commission,” Multi-commodity Exchange of India senior Vice-President (Business Development), Mr Sanjit Prasad said.

He added that all the three commodities witnessed huge price volatility and, therefore throw up greater need to be hedged. The country's largest commodity exchange at present provides a platform for trading 8-10 agricultural commodities, with the most re cent launch being coriander leaf.

The National Commodity and Derivatives Exchange (NCDEX) is, at present, the largest agri-commodity bourse of the country. Asked if MCX sees any threat to its position coming from National Multi-commodity Exchange (NMCE) after Reliance Money picked up a 26 per cent stake in the country's third largest commodity bourse, Mr Prasad said he is optimistic that MCX will retain its lead position.

“It's a knowledge-based industry. If you have the expertise you will rule. Sustaining contracts poses a big challenge. While we welcome competition, we are confident of maintaining the top position in future,” Mr Prasad said. - PTI

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