MCX witnesses record 8,280 tonnes potato delivery in September

Mumbai, Sep 25 (UNI) A robust delivery mechanism and knowledge of physical market intricacies have led to record deliveries of potato on the Multi Commodity Exchange (MCX) of India platform.

A record 8,280 tonnes were delivered upon culmination of the September Agra potato contract which expired on September 14. The settlement rate (DDR) of the potato Agra contract was Rs 620.40 per quintal.

''This record delivery reaffirms the fact of MCX's deep domain knowledge about the futures and physical commodity markets,'' said MCX vice president Sanjit Prasad.

Agra potato accounts for 40 per cent of the total Indian potato crop estimated at around 26-27 million tonnes annually. Farmers are among the biggest beneficiaries of futures trading in potato. Prior to MCX, the farmer had no clue on prices beyond a day and, therefore, no incentive to hold potatoes post-harvest. Now, with a range of prices available to the farmer, thanks to futures trading of the commodity, he can decide to sell his produce immediately or much later, based on prevailing futures prices one, two or three months post-harvest.

UNI