MCX ties up with schools to develop futures market

The Multi Commodity Exchange of India (MCX) is steeping into educational and vocational segments by joining hands with two institutions.

MCX will work with the GB Pant University of Agriculture and Technology (GBPUAT) to set up a system for farmers to learn key issues on farm management.

It has allied itself with the Welingkars Institute as well to provide management development programmes in commodity derivatives

MCX along with the GBPUAT will set up 'Krishi Sewa Kendra' in various parts of the country.

These will be one-stop centres for the farmers, agriculturists and processors and will disseminate information on farm management. In addition, the 'Krishi Sewa Kendra' will conduct several training sessions on the futures market.

Extension programmes will be held to integrate the present fragmented spot markets in the state.

It will conduct short certification coursers for agriculture and other management students, designed to familiarise them on the functioning of markets.

The pilot project will be initiated by MCX in Uttaranchal and Uttar Pradesh in collaboration with a non-government organisation, the Institute for Applied System Of Rural Development (IASRD).

In the model, farmers can have access to finance from MCX promoting banks and access fair market prices through MCX brokers. The service is will be facilitated through e-sanchalaks, who would be a self-employed individual.

GBPUAT has an existing extension programme to reach out to villages for introducing better seed, farm practices and crop knowledge to the farmers.

MCX will take this further and train students of the university in futures trading.

MCX will devise a training manual and literature to educate farmers and students on the use of futures market.

MCX will work with the Welingkar Institute of Management and Research to provide management development programmes in commodity derivatives.

The programmes would educate students on the dynamics that drive the commodity futures market and help them understand the functioning of the exchange and its intermediaries.

It will also focus on how the futures trading can protect and add value to business.

The programme is designed to help portfolio and risk managers, corporate treasury, banks and financial institutions, brokers, traders, hedgers, arbitragers and management students.

The MCX-Welingkar duo will tie-up with the 100-odd management institutes enrolled as members of the Association of Indian Management Schools (AIMS). About 200 such programmes are charted out for 2005.