Kochi: Online futures
trading in coffee has been launched for the first time in the country to help
small and medium coffee growers through stability and efficient price discovery.
coffee futures trading was now available at the country''s first Multi Commodity
Exchange through a Geojit terminal.
a joint venture with Kerala State Industrial Development Corporation, was
a leading financial and commodity markets intermediary listed on the Bombay
on the occasion, Forward Markets Commission chairman S Sundaresan said the
move had made it clear that international price movements would primarily
drive the Indian coffee market and fluctuations were the order of the day.
most of the coffee growers were in small and medium segment, price risk management
was increasingly becoming important. With the new online trading all contracts
were standardised (with delivery months and locations, quantity and grade)
with only the price being negotiable.
would ensure more stability and allow for efficient price discovery, said.
Multi Commodity Exchange of India (NMCE) managing director Kailash Gupta said
addition of coffee for trading was among the most traded and volatile commodities.
'''' We see small holders gaining tremendously with access to actual market
prices from the trading terminals set up in their own backyards,'''' he added.
managing director C J George said education programme on coffee would be launched
in the heartland where the crop was grown on the similar lines of those done
to promote trading of pepper and rubber in Kerala. The online facility would
provide a common
platform for coffee growers and trading terminals would be provided in over
100 places, he added.