Categories: Business

MCX seeks approval from Sebi to re-launch potato future contracts

Photo: PTI (FILE)

SEBI

new Delhi. The Multi Commodity Exchange (MCX), which provides a platform for commodity trading, has said that it has sought permission from the capital markets regulator SEBI to resume potato futures trading. In a webinar organized on agricultural sector reforms, Rishi Naithani, head of business development, MCX, said, "Sensitive commodities like common-use pulses and sugar need risk protection. At the same time, we can start futures trading in potato soon. ”He was speaking on the demand of industries to increase agricultural futures business. He said that the exchange has sought permission from the Securities and Exchange Board of India (SEBI) to resume the potato futures contract. An application has been made for this.

He said that potato futures contract in MCX has been very successful but after some time liquidity has ended. Because of this, the futures market commission, the regulator of the then commodity futures trading, asked MCX to stop trading in September 2014. The webinar on agricultural reforms was organized by MCX and Indian Merchants' Chamber together. During this time, ITC, the leading company in the food business sector, stressed on starting futures trading to avoid price risk in many commodities. He said that during the lockdown, crude oil prices fell by 70 percent, palm oil became 30 percent cheaper. The prices of maize, wheat and potatoes were seen to fluctuate greatly, causing loss to the FMCG companies, which are making everyday products. Tadkeshwar, Delhi, Agra are major commercial centers of potatoes in West Bengal. These centers have facilities for large potato storehouses. These warehouses have become very important in terms of contract farming for domestic and multinational food companies.

This post was published on July 15, 2020 5:44 pm

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