MCX weekly contracts for farm goods

Weekly contracts for all agri commodities.

Mumbai-based Multi Commodity Exchange (MCX) is planning to launch the T+7 or weekly contracts in all its agriculture commodities. This follows the launch of a similar dematerialised gold product along with World Gold Council last month.

Currently all the contracts on the exchange are three-month or bi-monthly ones. Speaking to Business Standard, an exchange official said the contracts were in the drawing-board stage, and a proposal in this regard was to be sent to the Forward Markets Commission (FMC), the regulator of the commodity markets.

Asked whether a similar product would also be available for the crude contract on the exchange, the official declined to comment.

"The initiative is expected to bring more participants from investors in the stock market as well," he said. The FMC said it was not actively looking at such a contract at the moment, but would do the needful once the proposal was received.

However, sources indicate that such contracts will see volumes only with better participation from all sectors.