Introduction, Contents, Foreword, From the Editorial Desk ... - MCX

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the overall quality of the book based on their feedback. Having won several credentials in its journey to becoming India’s largest and the world’s sixth largest commodity exchange, driven by its strategic partnerships with various ecosystem players, it was time for MCX to focus on creating a global benchmark platform with worldwide-traded commodities, which would follow global benchmark practices to provide domestic economic stakeholders with a costeffective platform to mitigate the forces of international commodity fundamentals in Indian time zone. priate guidance in their future decisions ranging from personal consumption to national economic policymaking. In our bid to reach out to a wider base of stakeholders – and give them access to the yearbook – than the limitation of a printed edition allows us to, we have already hosted the electronic version of the first edition of ‘Commodity Insights’ on the exchange website, www.mcxindia. com. It draws an average of 411 visitors everyday and has attracted nearly 56,680 hits since it was uploaded in May-end. To inform those who are new to this joint endeavour of MCX and PwC, the first issue was released on October 14, 2009. We would like to thank Mr. Jignesh Shah, Vice Chairman – MCX; Mr. Lamon Rutten, MD and CEO – MCX; Mr. Parveen Singhal, DMD – MCX; and Mr. Kumar Dasgupta, Partner – Price Waterhouse; for their continuous encouragement and support without which this initiative of ours would have remained unaccomplished. We also would PwC, which services clients the world over in their efforts towards price risk management of globallytraded commodities, becomes MCX’s natural partner in this joint endeavour aimed at enlightening market participants, academicians, corporations, and policymakers with prices and the fundamentals that shape them. We firmly believe that this effort of ours will help all these stakeholders with approlike to thank Sujan Bhattacharyya, Niteen Jain, Nazir Moulvi, Dhwani Mehta and Debojyoti Dey, all from MCX, and Dr. Kiran Karande from Price Waterhouse for their relentless efforts, day in and day out, without which our idea would not have taken the shape of this book. It is our pleasure to acknowledge the work of summer interns from SCMHRD, Pune – Ms. Arshika Mishra, Mr. Ankit Dua and Mr. L. Deepak – on updating the data sets published in the 2009 edition. And finally, this message from the editorial desk will not be complete without thanking Ms. Carol Daver and Ms. Vidya Shintre who helped gather financial support for packaging this idea of ours in a most presentable manner. You may share your views, thoughts, and suggestions with us at ci@mcxindia.com, or at the email addresses provided below; this surely will help us enrich ‘Commodity Insights’ even further in future attempts. Hope, you find this edition worth referring to, time and again. V. Shunmugam Chief Dr. V Sunmugam Economist Multi Commodity Exchange of India Kumar Dasgupta Dr. V Sunmugam Kumar Dasgupta Partner Kumar Dasgupta Price Waterhouse A PwC & MCX Joint Endeavour | 9
market CoMMENTARY Commodity Markets – Poised to unlock value for the stakeholders With gradual realisation and acceptance by economic stakeholders that in order to take necessary commercial decisions, they have to factor in global (not just domestic) availability and prices of commodities, there has also been a tacit recognition of the necessity of protecting commercial operations from the risks posed by high price volatility at the international level. An Ernst and Young survey in 2008 found that there has been an overwhelming recognition of risks stemming from commodity price fluctuations and, thus, of the importance of hedging of inputs at pre-fixed prices as a risk-mitigating strategy. However, our markets, which are mature enough to unlock values for the stakeholders, now need an enabling environment that is based on imaginative and bold policy agenda. For reasons with multiple implications, commodities have been in the news for much of the period since ‘Commodities Insights’ made its appearance last autumn. Although much water has flown since then, commodities with their varied economic dimensions have come to visit us more often, at times with a greater force than before. With globalisation of the Indian economy, nearly all its players – from tractor-driving farmers to jet-flying corporates – are getting exposed to the vagaries of international fundamentals affecting commodities that they are concerned with. Whether the Indian economy is truly ‘decoupled’ from the forces driving economies elsewhere in the world or not, particularly during a crisis scenario like the current one, our 10 | Commodity Insights Yearbook 2010
Page 1: A Joint Endeavour CommoditY insight
Page 4 and 5: About PwC PwC refers to the network
Page 6: Weather Derivatives: A Key Tool for
Page 9: from the EDIToRIAL DESK Reaching Ou
Page 14 and 15: Healthy market growth - in need of
Page 17: PricewaterhouseCoopers Pvt. Ltd. 2n

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