Futures market plays 'surrogate' role: FMC Chairman

Kochi, Jan 19 (UNI) The Forwards Market Commission (FMC) Chairman B C Khatua today said futures market would play a 'surrogate' role in restructuring the physical market in terms of quality and supply.

Addressing a gathering, after inaugurating an interactive session on 'scope of futures trade in agro commodities' here, Mr Khatua said ''the futures market will fill the deficiencies of the physical market and create more awareness on the quality of products.'' The futures market would be an incentive for the producers and farmers to improve quality by adopting better farming techniques, using hybrid seeds and grading facilities at the farm gate itself, he noted.

He said the supply chain would also be made more efficient and lean through better transportation and reduction in cost and wastage.

The Indian futures market made great strides in the last four years and it had great potential to become one of the best in the world market, he claimed.

The session organised by National Multi-Commodity Exchange (NMCE) of India Ltd in association with FMC aimed to discuss the power of future trade, benefit of farmers, role of broking house, risk management and price discovery, clearing and settlement, warehousing and storage practice, and the role of two banks - Punjab National Bank and Federal Bank - in the futures market.

UNI MA GKT 1918