BUSINESS

Awareness programme on silk futures trading

COIMBATORE, MARCH 24. The Central Silk Board and the National Commodity and Derivatives Exchange (NCDEX) will organise an awareness programme on futures trading in cocoon and silk in Kancheepuram on March 29.

The Director of the Central Silk Technological Research Institute, T. H. Somashekar, told The Hindu here recently that futures trading in cocoon and silk was launched in January and awareness programmes would be organised for three months in different parts of the country.

During this period, an association consisting of silk reelers, weavers and farmers would be formed. It would act as a trading agent and the trading clients (its members) would be able to trade through it.

An association was already in place and it could take a year to stabilise. The objective of the awareness camps was to help the reelers, farmers and weavers know more about the project and ensure wider participation of the stakeholders. He explained that the Central Silk Board and the NCDEX had designed this system for mulberry cocoon and raw silk. It facilitated better price `discovery', quality-linked pricing and dissemination of market information.

Initially, futures trading in cocoon would start with delivery centres at Dharmapuri (Tamil Nadu), Hindupur (Andhra Pradesh) and Ramanagaram (Karnataka). For raw silk, it would be at Kancheepuram (Tamil Nadu), Dharmavaram (Andhra Pradesh) and Varanasi (Uttar Pradesh).

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