MCX educates the commodity stakeholders in the cities of Madhya Pradesh & Gujarat

Mumbai, June 1, 2016: Despite the gradual growth of the commodity futures market in India, Multi Commodity Exchange of India Ltd (MCX) has been making an all-out effort to spread financial literacy and knowledge about commodity derivatives across the country. Therefore, as part of that initiative, the exchange organised 12 commodity awareness programmes in May in the cities and towns of Madhya Pradesh and Gujarat.

These programmes were organized in association with various trade and business associations such as Khad Bij Association, Depalpur; Association of Industries, Dewas; Jabalpur Sarafa Association, South Gujarat Productivity Council (SGPC), Surat; Jamnagar Branch of WIRC of ICAI, Gandhinagar District Shopping Center Merchant Association to name a few.

The programmes were customized keeping in mind the target audiences which included, traders, producers, processors, jewelers, manufacturers, professionals, and farmers. There were presentations on benefits of hedging, role of commodity futures exchanges and importance of futures market as tool for price discovery and price risk management, while focusing on trading aspects, rules and by-laws of the exchange; and clearing and settlement procedures, among others.

One of the reason attributed for the growth of commodity futures market in India in the last few years has been the financial inclusion of a rapidly growing number of small market participants. By partnering with these associations, institutes and trade bodies of repute across the country commodity exchanges such as MCX have been undertaking the challenge of spreading literacy on commodity markets and demystifying commodity markets’ lexicon for commodity stakeholders. This is the key for creating new avenues of growth in this sector thereby increasing market penetration.

Through these literacy initiatives, especially the ones organized in the hinterlands of the country, MCX’s efforts are targeted towards adding value to the livelihoods of small traders, SMEs, MSMEs and the farming community. Thus, enabling them to take informed decisions, making the commodity trading platform more relevant and accessible and take the benefits of commodity markets to the masses through efficient, safe and secure ecosystem while enhancing economic value for all stakeholders.