Multi Commodity Exchange of India Ltd (MCX) has organised awareness programmes on commodity futures at Lohardaga, and Gumla.
The programme,focusing on the benefits of hedging and price discovery mechanism,held on May5-6,was observed for members of Lohardaga Chamber of Commerce, Lohardaga Gold Association,and Gumla Chamber of Commerce.Most beneficiaries were jewellers.
As it is,since Jewellery business is exposed to price risk of precious metal market on regular basis,the commodity exchange platform can be used to mitigate the same by locking in the future prices.”Commodity exchanges such as MCX provide a transparent price discovery and hedging platform for trading futures contract of different commodities”,said a beneficiary.
On these exchanges, the fair-value prices are determined through active participation of a large number of stakeholders of the commodity value chain, who have access to information on the demand and supply conditions. “This informative seminar was used to build their confidence in futures market participation”,said another beneficiary.
The experts from MCX explained in detail about the commodity futures market.”It is a well-accepted and widely participated institutional innovation to help stake holders discover future prices and to better manage risks to their businesses or economic well-being arising out of commodity price movements”,said a staff of MCX.