Commodity Participants Association of India(CPAI) organised its 7th International Convention on the theme of “Building Indian Commodity Market for Job Creation and Sustainable Development Goals” in New Delhi on July 13th, 2019
- The convention laid down future growth map for commodity markets to achieve the Prime Minister’s vision of doubling farmers’ income by 2024, in alignment with the sustainable development goals
- Convention moots institutionalisation of commodity markets by allowing all participants, including banks and institutions, and stresses on linking spot and futures markets
New Delhi, July 13, 2019: Commodity Participants Association of India (CPAI), the pan-India association of national commodity exchanges and commodities participants, today organised its 7th International Convention on ‘Building Indian Commodity Market for Job Creation and Sustainable Development Goals.’
Shri. Anurag Singh Thakur, Hon’ble Minister of State for Finance and Corporate Affairs; Shri. Anand Mohan Bajaj, Joint Secretary, Financial Market, (DEA), Ministry of Finance and Shri. Sharad Sharma, Regional Director, Securities and Exchange Board of India (SEBI) –NRO were the prominent guests present at the convention. Among other dignitaries attending were Shri. Vikram Limaye, Managing Director & CEO, National Stock Exchange of India Ltd (NSE); Shri.P. S Reddy, Managing Director & CEO, MCX; Shri.P K Singhal, Chief Commodity Strategy, BSE; Shri Balu Nair, Interim CEO of Metropolitan Stock Exchange (MSE) and Shri. Shiv Kumar Goel, Chairman Convention Committee & Past President of CPAI.
The United Nation’s Sustainable Development Goals (SDGs) were adopted on 25th September, 2015 by 193 countries to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda to be achieved by 2030. Three of these SDGs – achieving food and energy security, adding value to commodities and improving the management of natural resources by increasing resource efficiency and renewable energy use – are particularly associated with the challenges of commodity-dependent developing countries.
India’s economic performance also is very closely associated with developments in the commodity sector. The linkages between commodity markets, economic growth and development are both strong and complex.
Further elaborating on the objectives of the Convention, Mr. Narinder Wadhwa, National President of CPAI and founder and managing director of SKI Group, said: “This year, the broader agenda of CPAI’s international convention was to bring together all the industry stakeholders—exchanges, members and intermediaries and regulators – to deliberate on ideas about how the growth of our commodity markets be aligned to the objectives of job creation and attaining the sustainable development goals. Prime Minister’s vision of doubling farmers’ income by 2024 is also towards the SDGs and to realise this vision, there is a need for the entire industry to come together and work on this change. In this direction, it’s been our constant endeavour to encourage and educate hedgers, farmers and producers to participate in commodities markets ’ for efficient price discovery and price risk hedging. ”
Mr. Ashok Kumar Agarwal, Chairman and Promoter of Globe Capital Market Limited and Chief Mentor of CPAI, added: “We are the biggest consumers and also the biggest producers and exporters of many commodities. It should, therefore, be the objective for the entire commodity market ecosystem to enable India rise to the position of a “price setter” of commodities rather than being just a price taker. As an important part of the commodity markets, we need to start deliberating on the level of preparedness to enable this transition. We need to internalize and identify the factors which are hindering this change. Focussing on the 3Ps– Policy, Products and Participants – will enable us to achieve the objective.”
Various panel discussions were held at the Convention to delve on the opportunities and challenges in the commodity market industry and on ways to create linkages with employment generation and achievement of SDGs. In the panel on ‘Institutionalisation of Commodities Markets,’ panelists discussed the need of bringing all participants, including banks and institutions on the commodity exchange platform to achieve these goals.
The importance of linking of spot and futures market, as has been suggested by the Prime Minister, was the topic of yet another deliberation. The panellists said the government and regulators’ “pragmatic policy decisions” like unified license and allowing equity exchanges to introduce new commodities contracts such as Basmati, diamonds and petrol, in addition to allowing compulsory delivery in base and other metals were all steps in the direction of integrating spot and derivatives market.
Commodity Participants Association of India (CPAI) is the registered all India association of all the national commodity exchanges and comprising commodities participants of recognized Commodity Exchanges like MCX, NCDEX, NSE, BSE, ICEX, MSEI and other commodity market participants in the value chain operating across the country. The Association has its Head office in New Delhi and has four regions viz. Western region, Eastern region, Northern Region and Southern Region.
CPAI’s mission is to work for a transparent, efficient, safe & vibrant commodity derivatives market and creating world-class infrastructure for commodity spot markets. CPAI has a vision of Indian Commodities Market making an impact & influencing world commodity markets along with providing an efficient platform to consumers, producers, traders and the industry.