The Multi Commodity Exchange (MCX) has received approval from the Forward Markets Commission for launching forward contracts in natural gas. The contracts will be linked to Nymex and will be launched in early July.
The exchange had unsuccessfully tried to rope in Gujarat State Petronet as a service provider. A similar attempt by the National Commodity and Derivatives Exchange Ltd too proved futile. Unlike crude oil, natural gas has no global price benchmarks.
MCX has also finalised launching futures trading in `Kufri Jyoti variety of potato (popularly known as Bengal potato) in July. The exchange has already received the requisite permission from FMC. The potato contracts will be linked to the Tarakeswar Mandi in West Bengal.
Bengal is the second largest potato producer in the country after Uttar Pradesh. Accordingly, the forward contracts in Kufri Jyoti are expected to help price discovery in the local spot market.
MCX has already launched forward contracts on 3797 potato varieties available in Uttar Pradesh and is currently recording a daily turnover of Rs 40-50 crore.