Zorawar
08-16-2006, 01:55 PM
Farmers may get better prices for their agro-products at the various national commodity exchanges—previously they were at the mercy of middle-men and government-controlled prices. At this point several state governments still block the transfer of certain essential items and engage in setting artificial prices for these. This was done under the Essential Commodities Act—but over the years many of these items were quietly removed from the act. And the entire act will be amended this year.
Certain items have been traded in the past at the 25 regional exchanges listed here:
Ahmedabad Commodity Exchange, Bhatinda Oil Exchange, Bikaner Commodity Exchange, Bombay Commodity Exchange, Central India Commercial Exchange (Gwalior), Chamber of Commerce (Hapur), Coffee Futures Exchange of India (Bangalore), East India Cotton Association, E-commodities Ltd (Delhi), E-Sugar India Ltd., First Commodity Exchange of India (Kochi), Indian Pepper and Spice Trade Association (Kochi), Kanpur Commodity Exchange Ltd., Meerut Agro Commodities Exchange Company Ltd, Rajdhani Oil and Oilseeds Exchange (New Delhi), Rajkot. Seeds Oil and Bulion Merchants Association, Spices and Oilseeds Exchange (Sangli), Surendranagar Cotton Oil and Oilseeds Association, Vijai Beopar Chamber Ltd. (Muzzafarnagar), Bullion Association (Jaipur), NCS Infotech Ltd. (Hyderabad), SGI Commex Ltd. (Mumbai), Tea Auction Ltd. (Kolkata), the United Planters Association of Southern India (UPASI) and East India Jute and Hessian Exchange (Kolkata).
But now the national commodity exchanges like the National Multi-Commodities Exchange of India (NMCE) in Ahmedabad, the National Board of Trade (NBOT) in Indore, and the National Commodities and Derivatives Exchange (NCDEX) in Mumbai will provide the farmers with good prices. Another market for commodities that came up recently is the Multi-Commodity Exchange (MCX) in Mumbai.
The commodities markets across India (the old single item regional exchanges and the new national exchanges) are regulated by the Forward Markets Commission (FMC) — the Forward Contracts (Regulation) Act will be amended for current market conditions. It is understood that banks may soon be allowed to trade and buy futures contracts at these markets—loans given to farmers, against their crops as collateral, can be hedged for risk against the future price of that crop.
Certain items have been traded in the past at the 25 regional exchanges listed here:
Ahmedabad Commodity Exchange, Bhatinda Oil Exchange, Bikaner Commodity Exchange, Bombay Commodity Exchange, Central India Commercial Exchange (Gwalior), Chamber of Commerce (Hapur), Coffee Futures Exchange of India (Bangalore), East India Cotton Association, E-commodities Ltd (Delhi), E-Sugar India Ltd., First Commodity Exchange of India (Kochi), Indian Pepper and Spice Trade Association (Kochi), Kanpur Commodity Exchange Ltd., Meerut Agro Commodities Exchange Company Ltd, Rajdhani Oil and Oilseeds Exchange (New Delhi), Rajkot. Seeds Oil and Bulion Merchants Association, Spices and Oilseeds Exchange (Sangli), Surendranagar Cotton Oil and Oilseeds Association, Vijai Beopar Chamber Ltd. (Muzzafarnagar), Bullion Association (Jaipur), NCS Infotech Ltd. (Hyderabad), SGI Commex Ltd. (Mumbai), Tea Auction Ltd. (Kolkata), the United Planters Association of Southern India (UPASI) and East India Jute and Hessian Exchange (Kolkata).
But now the national commodity exchanges like the National Multi-Commodities Exchange of India (NMCE) in Ahmedabad, the National Board of Trade (NBOT) in Indore, and the National Commodities and Derivatives Exchange (NCDEX) in Mumbai will provide the farmers with good prices. Another market for commodities that came up recently is the Multi-Commodity Exchange (MCX) in Mumbai.
The commodities markets across India (the old single item regional exchanges and the new national exchanges) are regulated by the Forward Markets Commission (FMC) — the Forward Contracts (Regulation) Act will be amended for current market conditions. It is understood that banks may soon be allowed to trade and buy futures contracts at these markets—loans given to farmers, against their crops as collateral, can be hedged for risk against the future price of that crop.