Mumbai, April 1: Myanmar, one of the largest exporters of pulses to India, has opened its first ever online commodity exchange Multi Commodity Exchange (MICEx).
The exchange, which will be open 23×7, has partnered with SLCM Ltd, the wholly-owned subsidiary of Indian company Sohanlal Commodity Management, an accredited preferred warehouse service provider for tur, urad dals and other agro commodities by the exchange.
Promoted by Pearl Group, the exchange offers trading in various commodity contracts across segments with initial focus on pulses and gold.
India imports about 3-4 million tonnes of pulses a year and it is expected to go up this year because of climatic reasons. The country imports tur and urad from Myanmar.
Traders expect the exchange would pave way for clarity on key information such as production and acreage which was missing all these years. India allows futures trading only in chana.
Sandeep Sabharwal, Group CEO, SLCM, said just like India, Myanmar has huge potential to nurture its agriculture sector as the scope to improve productivity is enormous.
Myanmar Paddy Producer Association will regulate all the day-to-day functioning of the exchange to boost confidence of the participants in Myanmar.
MICEx has also signed an MoU with United Amara Bank of Myanmar for helping its members and clients banking operations.
Sumit Garg, Director, Pearl Group said it endeavours to transform commodity trading in Myanmar by its robust technology, which offers a platform for online trading, clearing and settlement of trades and risk management.
The exchange focuses on providing commodity value chain participants with neutral, secure and transparent trade mechanisms besides formulating quality parameters and trade regulations, in conformity with the regulatory framework of Myanmar. Sein Win Hlaing, Chairman, MICEx said the exchange would strengthen the economy of Myanmar and encourage build links to complement non-agricultural activities.
Source: Business Line