MCX to launch bourses for spot trading next month

HYDERABAD: Futures trading exchange Multi Commodities Exchange of India (MCX) is planning to set up spot exchanges for agriculture commodities by mid-January.

While National Spot Exchange would be the holding company for spot markets on non-perishable commodities, Safal National Exchange would handle fruits and vegetables.

National Spot Exchange is a joint venture between MCX, Financial Technologies India (FTIL), and the National Agricultural Co-operative Marketing Federation of India (Nafed).

MCX has also formed Safal National Exchange in partnership with FTIL and the National Dairy Development Board (NDDB) for perishable commodities.

“We have identified commodities for spot trading. In Gujarat, spot exchange will deal with castor seeds and cumin seeds while in Madhya Pradesh trading will be in soya bean and soya oil. In Rajasthan, we are looking at trading in guar seed,” said Jignesh Shah, MD & CEO of MCX.

MCX has proposed to set up a spot market in West Bengal also. “However, we are yet to finalise the commodity of trading there,” he added.

According to him, through these spot terminals farmers will be able to sell their produce anywhere in the country, where his produce gets the maximum value. Spot market is a state subject while futures markets come under the jurisdiction of the central government.