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ITC Signs MoU with MCX - 05 Dec 2004


ITC E-Choupal and Multi Commodity Exchange of India (MCX) today signed a Memorandum of Understanding (MoU) to bring futures trading to the doorstep of farmers through the E-Choupal network.

The tie-up has a potential of generating business worth Rs. 3000 crores per annum. The MOU was signed by S Sivakumar, Chief Executive, Agri Business, ITC Limited and Joseph Massey, Dy. Managing Director of MCX.

Sivakumar, said "In the first phase, information of the futures market will be available at the 5,000 E-Choupals in Madhya Pradesh, Uttar Pradesh, Rajasthan, Maharashtra and some parts of Andhra Pradesh.

These E-Choupals cover 31,000 villages and have reached out to 3 million farmers till now. In a phased manner, the entire country will be covered," he added.

Talking about the benefit to farmers, Sivakumar said "Farmers will be able to take advantage of this tie-up immediately. In the first phase, they will be able to access on the current global prices for their produce through the E-Choupal and MSX network.

This information will be provided free and will help them realize a fair price for their produce in the local markets.

In the second phase, they would actually be able to trade on the futures market and this would put them on a strong footing in the WTO regime as well as give them an opportunity for hedging in the futures market. PTI