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Published on October 29, 2015
Kadi/Umreth: As a part of its key initiatives to propagate the importance, and benefits of commodity futures market among the market participants in every nook and corner of the country, Multi Commodity Exchange of India Ltd (MCX), conducted awareness programmes on commodity futures market at Kadi and Umreth in Gujarat. The programmes were organized in association with Shree Kadi Choksi and Suvarnakar Association on October 27, 2015, and Chokshi Mahajan Association, Umreth on October 29, 2015 respectively.
These programmes were targeted towards creating awareness on price risk management among the bullion stakeholders in Kadi and Umreth. Participants learnt about the functioning of commodity exchanges in India, and in what ways they can benefit from price discovery, and price risk management, the two most important functions performed by the exchanges. The programme also helped the participants to become aware about the wide ranged product basket offered by the exchanges in bullion, base metals, energy, and agri segments through which they can meet their hedging needs.
The market participants were also apprised about the futures contracts with smaller lot sizes—gold mini, gold petal, gold guinea, silver mini and silver micro—specifically catering to the price risk management needs of small jewellers. They were further briefed about the recently launched Gold Global, which is a both-options delivery logic contract, linked to international gold price, intended to serve the hedging needs of exporters, importers, and refiners who are exposed to volatility in international gold prices.
Ms. Komal Kanzaria, Assistant Vice President-Business Development, MCX, “Financial literacy is of paramount importance for the growth of commodity futures market in India, and is strongly supported by MCX. Hence, these programmes organized by MCX are one more step towards the empowerment of market participants, including the bullion stakeholders in the tier II, and tier III cities, so that they are able to understand about the benefits of price risk management, and manage price exposures effectively.
Mr. Soni Harsadbhai, President, Shree Kadi Choksi and Suvarnakar Association said, “In the emerging paradigm of the commodity derivatives market in India, exchanges such as MCX have been efficiently serving the hedging interest of the commodity value chain participants.”
Mr. Doshi Diveyesh, President, Chokshi Mahajan Association said, “Risk management techniques are of critical importance for bullion value chain participants in India, especially in today’s world where the bullion industry faces significant risk as the price movements of Gold and Silver are highly volatile with several domestic and international factors influencing their prices.”