CPAI organizes first International convention on commodities market

New Delhi: Commodity Participants Association of India (CPAI), an all India body comprising of commodities participants of various recognized commodity exchanges like ACE, ICEX, MCX, NCDEX, and NMCE in association with Forward Market Commission (FMC) organized the 1st International convention on commodities market called "India-Emerging Commodities Hub" today.

The convention consisted of three sessions namely 1) Inaugural Session, 2) Technical Session and 3) Concluding Session.

Inaugural session was chaired by Mr. Sharad Pawar, Minister of Agriculture and Minister of Consumer Affairs, food and Public distribution and Mr. B.C Khatua, Chairman, Forward Market Commission was the guest of honor of the session which was themed "India – Emerging Commodities Hub". Honorable Minister released a journal prepared by CPAI in the same session.

Speaking at the inaugural session Mr. Gopal K Agarwal, National President, Commodity Participants Association of India (CPAI) said "If India has to emerge as an economic power, we need to take collective steps in the right earnest to develop our markets and remove all impediments. A collective and determined resolve always gives the desired results. There have been long array of reforms bills starting from Essential Commodities Act of 1955 to Agriculture Price Commission, agriculture Produce Marketing Committee (APMC) Act, National Agriculture Policy etc. to the upcoming Seeds Bill and Food Security Bill, meeting the requirements of the time. We have to show the same resolve in enacting Forward Contract Regulation Act (FCRA) and the process of reforms in the case of Warehousing Development and Regulatory Authority (WDRA), so that a conducive environment is created for the commodities market and India can emerge as a Global Trading Centre and emerge as an International Commodities Hub"

Mr. Sharad Pawar, Honorable Minister of Agriculture and Minister of Consumer affairs, food and Public distribution optimistically said "The commodity futures market has made giant strides in the short span of 7 years following the liberalization of the market. This momentum is expected to continue and even be stepped up with the introduction of further supporting policy measures which hopefully will be taken up shortly. In order to sustain this growth, all stakeholders of this market should work responsibly to create and maintain dynamism, credibility and stability in the market. It is up to the market participants and stakeholders to build this market in such a way that the intrinsic economic significance of the market as that of a platform for price discovery and risk management is not lost. Sincere efforts should also be made to ensure that there is no information asymmetry amongst the markets participants."

Releasing the journal on "India – Emerging Commodities Hub", Honorable Minister complemented the initiative taken by CPAI in preparing the research journal and hoped that it would fill some of the information gap that exists with regards to the commodity derivative market.

Mr. D.K. Aggarwal, National Alternate President, CPAI gave the vote of thanks before concluding the first session. He said, "India possesses a unique position as a major consumption market and this is an invitation to the world to explore the Indian market. We are expecting massive expansion in Commodities trade volumes over the next 15-20 years. Some of the important things which needs urgent attention are: passing of FCRA Amendment Bill, introduction of options contracts, permission to FII's and NRI's to trade in Indian Commodity Exchanges in Non Agri commodities, permission to banks to trade in Indian Commodity futures, allow contracts on commodity Indices and contracts on intangibles like freight and Weather and also the treatment of profits from commodity derivatives as business income and not as speculative income. I am confident if these measures are taken, we will see India in near future as price setter of Benchmark prices of various Commodities worldwide."

The inaugural session was followed by Technical and concluding sessions. In the technical session, Mr. BC Khatua, Chairman, Forward Market commission, Govt of India was the chief guest and Mr. R Ramaseshan, CEO, NCDEX was the Guest of Honor. In the concluding session, Mr. Rajiv Aggarwal, secretary, Minisry of Consumer affairs was the chief guest. The whole convention was knitted around the theme "India- Emerging Commodities Hub"

The convention turned out to be a common platform for government and all participants in commodity market to share their views and critically examine the current situation and discuss the ways to make India the commodities hub for the world. By the end of the convention, it was unanimous that India has the potential to become the commodities hub subject to some steps taken sincerely and strictly.

Source : Equity Bulls

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