Date:01/08/2007 URL: http://www.thehindubusinessline.com/2007/08/01/stories/2007080150841200.htm

Back MCX launches raw jute futures

Our Bureau

Kolkata, July 31 MCX on Tuesday launched future contracts on TD-4 grade of raw jute. Contract would be fair average quality with ex-Kolkata delivery. Spot price would be linked to Kolkata and the jute growing districts of Murshidabad, Nadia and North 24 Parganas. Trading lot is pegged at 10 tonne and prices will be determined per quintal basis.

“West Bengal is the country’s largest producer of raw jute followed by Assam and Orissa. We estimate good participation from producers, traders, processors and jute mills and also good open interest to meet the hedging need of the industry,” Mr Joseph Massey, Deputy Managing Director, MCX, said at a presentation in Kolkata on July 30.

Interestingly, jute is the second agricultural commodity — after potato – which has attracted the attention of MCX. The exchange has previously launched forward contracts on kufri-jyoti variety of potatoes linked to Tarakeswar spot market.