MCX launches futures trading of Potato contract in W Bengal

Mumbai, Sep 9 (UNI) The Multi Commodity Exchange of India (MCX) today launched futures trading in Potato (Tarkeshwar) contract in West Bengal.

In a press release MCX said that the basic variety of potato used for futures trading is 'Kufri Jyoti', which is procured from Hooghly, Burdwan, Howrah and other districts of the state.

''We are happy to launch futures trading in Potato Tarkeshwar contract. 'Kufri Jyoti' has been chosen as it is produced in the state in abundance. West Bengal has over 400 cold storages and the storage-owners and traders will benefit from it,'' said the MD&CEO of MCX Mr Jignesh Shah.

The delivery centre is ex-cold storage, Tarkeshwar region, Hoogly district in West Bengal. Delivery can be made only from MCX-approved cold storages.

Trading and delivery unit is 30 metric tonne, with quotation in Rs/per 100 kg. The tick size is 10 paise. Daily price limit has been fixed at 4 per cent with an initial margin of 5 per cent and there is a provision for special margin in case of excessive volatility.

The physical market in West Bengal is estimated at Rs 3,000 crore.

West Bengal potato goes to Orissa, Bihar, Assam, Jharkhand, North East and Andhra Pradesh. About 76.21 lakh tonne of potato was produced in the state during 2003-04.

It may be noted that MCX, which is an independent and de-mutualised multi-commodity exchange recognised by the Government, as a nationwide, digital exchange facilitates online trading, clearing and settlement operations for commodity futures trading.

Key shareholders of MCX include Financial Technologies (India), State Bank of India&its subsidiaries, Fid Fund (Mauritius) an affiliate of Fidelity International, National Stock Exchange of India (NSE), National Bank for Agriculture&Rural Development (NABARD), HDFC Bank, SBI Life Insurance, Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.

UNI SN WD SKB1912