Kochi-based First Commodities Exchange of India Ltd is all set to re-start futures trading in coconut oil and copra from October 20.
The Forward Markets Commission had allowed the company, a subsidiary of Cochin Oil Merchants Association, to launch forward trading in the commoditiesfrom June 1 to May 31, 2013.
Association and company Vice-President Prakash B.Rao told
The exchange expects an average transaction of 100-250 tonnes daily through its online platform. The commodities plans to contracts each for the 12 months, he said.
The delivery point will be within a radius of 80 km from Kochi. He said that the company has set up a 13,000 sq ft storage facility on its premises at Vazhakkulam near Aluva.
On complaints regarding trading, Rao said, “We have set up an arbitration committee to deal with any disputes related to delivery, quality or on any aspect of trading. The board members of the exchange will chalk out further course of action based on the complaints.”
According to Rao, First Commodties had started futures trading in coconut oil in 2001, which continued till May 31. However, due to some technical and legal issues it discontinued trading.
The company is expecting better participation from traders, growers and exporters, as they can hedge their positions. To ensure more participation, he said, there are plans to conduct awareness programmes in various parts of the South.
First Commodities also plans to start futures trading in rubber and oil cakes shortly, he said.