Move will benefit coconut farmers, producers and traders
KOCHI: The Coconut Development Board will introduce online futures trading for copra. The move is intended to benefit coconut farmers, copra producers and traders.
The board convened a meeting on March 1 with the Director, Forward Market Commission, Managing Director NMCE, Regional Manager, Central Warehousing Corporation and representatives of the trade and industry.
At present, futures trading is done for coconut oil only by First Commodity Exchange of India at its centre in Kochi. Introducing online trading of copra has been a long pending demand of the copra merchants and traders. The system will ensure better price discovery, greater transparency and price stabilisation, board chairman Minnie Mathew said in a statement. The meeting decided to introduce online trading for copra based on Agmark standards in which the specified oil content will be 64 per cent at 6 per cent moisture.
The unit of trading and unit of delivery will be on MT. At present, NMCE is having 550 terminals in the country.
Based on future demands and requirements, more terminals will be established by JRG group, the approved agency of NMCE as per trader requirements. Copra traders from Vadakara and Kozhikode and oil millers and traders from Thrissur, Kochi and other places have come forward to enter online trading. When the system becomes fully operational, more traders are expected to participate in the online futures trade in milling copra. To start with, Kozhikode will be the centre of trading for copra.
Ms. Minnie Mathew presided over the meeting. K. Kailash Gupta, Managing Director, NMCE, K.S. Uma, Director, Forward Market Commisson, R.S. Pillai, Regional Manager, Punjab National Bank, Ernakulam, Giby Mathew, Managing Director, JRG Securities, Thomas Mathew, Chief Coconut Development Officer were among those participated at the meeting.