As a part of its ongoing efforts to educate and inform the commodity market participants, including the bullion stakeholders about hedging price risks stemming from the volatility in commodity prices, Multi Commodity Exchange of India Ltd. (MCX) organised awareness programme with three sarafa associations in Rajasthan.
The programme on Hedging Bullion Exposures was organised in association with Jodhpur Jewellers association, and Jodhpur Sarafa Association on Monday, September 28, 2015 in Jodhpur. Additionally, another programme held earlier during this month at Kishangarh—a small city and municipality in Ajmer district of Rajasthan—was in association with Shree Kishangarh Sarafa Sangh.
During the programme, the experts from MCX focused on significant aspects of commodity futures market, such as introduction to commodity derivatives, benefits of futures trading and role of commodity futures exchanges, importance of price discovery and price risk management, and regulatory perspective, among others.
Mr. Ranjit Singh, Senior Manager-Business Development, MCX said, “Of late gold and silver prices have witnessed high price volatility, which induces large economic risks in an increasingly competitive and globalised business environment. This needs the use of price risk management mechanisms to hedge price exposures of bullion stakeholders. By design, gold and silver futures trading serve multiple purposes such as hedging, price discovery and price transparency. Moreover, as these contracts are traded on regulated commodity exchanges like MCX, they are secure.”
Mr. Padamchand Kankariya, President, with Jodhpur Jewellers Association said, “By organizing these programmes on the benefits of commodity futures market and price risk management, in the tier II & tier III cities MCX is empowering the market participants to safe guard their businesses against extreme uncertainty and price volatility, which is any day higher in case of bullion.”
Mr. Shivnarayan Agrawal, President, The Jodhpur Sarafa Association said, “Through these programmes, the market participants in India are gradually realizing the importance and need to participate on commodity exchanges, for which the credit goes to MCX, to great extent. An increased participation of such players will go a long way in further streamlining commodity trading in India by bringing in relevant information about the fundamentals into the market and, thus, making the price discovery process even more efficient.”
Mr. Surendra Singh Mahnot, President, Shree Kishangarh Sarafa Sangh “Especially at a time when the volatility in bullion is on the rise, I feel this session was much required and was definitely an eye-opener for most of us. I now am hopeful that my fellow members would now be able to hedge against uncertainties in the price movements of bullion.”