Awareness programme on commodity futures to promote hedging

It aimed at highlighting the significance of commodity futures trading for the commodity value chain participants, educate them about intricacies of commodity futures market and also focused on hedging commodity price exposures.

 

This educational seminar gave the participants a detailed outlook into the world of futures trading. The experts explained about the commodity futures market, which is a mechanism for effective price risk management and price discovery. Besides the functioning of Commodity Exchanges, the experts from MCX also explained the commodity market operations & market dynamics, fundamental principles of price risk management, and the regulatory perspective.

 

The experts from MCX further highlighted the fact that commodity exchanges have come a long way in infusing efficiency in to the existing physical markets of commodities traded on the exchange platform thereby strengthening the economy besides helping in improving the market infrastructure. The experts also elaborated on the impact of uncertainties and price fluctuations in commodity markets on business strategies and other economic activities.

 

Sudip Bagchi, General Secretary, Dakhin Dinajpur Chamber of Commerce said, “In the recent years, commodity prices have witnessed high price volatility, which has induced large economic risks in an increasingly competitive and globalised business environment. Therefore, there is an urgent need for use of price risk management mechanisms/tools to hedge price exposures of all commodity stakeholders. The market participants can effectively hedge their price risks by trading on exchange platforms such as MCX.” 

 

The participants showed keen interest in the programme, and they opined that such programmes greatly benefits the commodity market participants and also gives them an opportunity to interact with experts in the field. The participants were keen to learn more about the various innovative futures contracts in the bullion, base metals and agri segment offered by the Exchange.