Local leaders exploiting rural markets: MCX

The Multi Commodity Exchange (MCX) is pitching hard with the state government for allowing spot exchange of commodities in West Bengal.

"However, the state government insists on mandatory APMC licence for each and every trader under the exchange," said Anjani Sinha, director, MCX on Wednesday.

MCX was investing around Rs 50 crore for an electronic spot exchange in Mumbai, which would regulate commodity markets across the country.

However, to start the system, there was a need to get approvals from all the state governments, and till now only two states""Gujarat and Rajasthan had given the permission, said Sinha.

"West Bengal needs to change the APMC act, so that the markets are not exploited by local leaders. Bihar has already repealed the act," he said.

According to the model for spot commodity exchange suggested by the MCX to the state government, e-market will issue licence for spot commodity exchange to state, which in turn will issue licences to the traders.

"In Bengal we would like to start with spot exchange in food-grains and pulses, with four to five warehouses," said Sinha.

He also informed that recently Dunlop had expressed interest for rubber trading in MCX, but the talks were in initial stages.