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`Spot trading' in copra begins today

By Our Special Correspondent

KOCHI Nov. 3. The First Commodities Exchange of India Limited will be starting `spot trading' in copra, coconut oil and oil cake from Monday. The ready delivery contracts in copra , coconut oil and oil cake is conducted to give more transparency and liquidity in the market.

Now some false information was coming especially from centres where copra trading has long ceased to exist like Alappuzha market which is confusing the outstation buyers, alleges P. V. Alexander and N. Ananthan, chairman and chief executive respectively of the First Commodities Exchange of India here.

The rules are already in place for the smooth conduct of ready transactions. Minimum unit of trading shall be 20 barrels (40 quintals) for coconut oil and 40 quintals (80 bags of 50 k.g.) for copra.

Non-members can also give and take delivery through the members of the exchange. In reply to a question, they said that the present `cry out system' would continue but the highest and lowest prices could be communicated over telephone to the interested traders outside Kochi.

Online trading would start within a year and a project at an estimated cost of Rs. 45 lakhs had been prepared. The exchange, which was started in October 29 last year with 12 members, has not shifted out as a registered office at the Marine Drive in the GCDA building.

Now the membership had increased to 40 and it has launched a membership drive. The total tonnes traded in coconut oil at the exchange had now touched nearly 100 tonnes a day now.

In December last, it was 280 tonnes (delivery 14 metric tonnes), which had gone up steadily and this October it stood at 1614 metric tonnes (delivery 80 metric tonnes).

To another question they said that the spot trading in the futures exchange would in no way affect the present trading organised by Cochin Oil Merchants Association. It was because of the emergence of the commodities exchange that the market price had risen above the support price for coconut oil.

The minimum support price operation in copra is being monopolised by a couple of agencies now and the procurement measures announced by the NAFED is not helping the coconut growers anymore.

On an annual basis, Governmental agencies are procuring nearly 2.30 lakh tones of copra from the markets but prices are remaining stagnant. Exporting copra was also not a paying proposition as the international price was only $400 as against $1,000 price for Indian exports. There is a suggestion to introduce futures trading in coconut too which is expected to materialise soon.

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