MD, ED & F Man Commodities India Pvt. Ltd.
AGRiM Sauda has been a welcome initiative. It has been the first ever constructive step taken towards reducing counter-party risks involved in commodity-based forward trading. AGRiM Sauda will help physical market participants expand their business, provided this market sees improved liquidity and bid-ask quotes entered are more realistic. AGRiM Sauda opens up an additional channel for giving and taking deliveries. At present, futures market facilitates deliveries based on lot-IDs. Sellers who have executed these deliveries are not known. If sellers’ identities are revealed, buyers can synchronise deliveries received on futures platform with forward platform. Once liquidity builds up in this segment, it will be easy to track demand and supply in niche/remote markets. For instance, if a sugar buyer from Rajasthan enters the quote in the online forward trading system, he can be easily contacted. Exchange traded forwards can also facilitate tracking the sugar supplies, if millers use this platform instead issuing tenders to release sugar stocks. To increase participation on this platform, more awareness needs to be created among physical market participants. Trading terminals can be made more user-friendly by applying commodity-wise filters. This will enable traders interested in sugar to see the quotes inserted only for sugar. Additionally, provision can be made to get the details of trade reflected on the right-hand side of the screen once the trader clicks on a particular trade of his interest.