Commodity exchange MCX is planning to launch futures trading in three farm products by next month to corner a leading position in the agri futures market.
"We will be launching futures trading in red arecanut, garlic and jute sacking within a month. We have already got permission from the regulator Forward Markets Commission," Multi-commodity Exchange of India senior Vice-President (Business Development) Sanjit Prasad told PTI.
He added that all the three commodities witnessed huge price volatility and, therefore, throw up greater need to be hedged.
The country's largest commodity exchange at present provides a platform for trading 8-10 agricultural commodities, with the most recent launch being coriander leaf. MCX is enjoying the lead position in the futures trading of metals, bullions and energy.
The National Commodity and Derivatives Exchange (NCDEX) is, at present, the largest agri-commodity bourse of the country.
Asked if MCX sees any threat to its position coming from National Multi-commodity Exchange (NMCE) after Reliance Money picked up a 26 per cent stake in the country's third largest commodity bourse, Prasad said he is optimistic that MCX will retain its lead position.
"It's a knowledge-based industry. If you have the expertise you will rule. Sustaining contracts poses a big challenge. While we welcome competition, we are confident of maintaining the top position in future," Prasad said.