Every commodity has unique supply chain, market dynamics: MCX CEO

Mumbai, Aug 13 (IANS) The Global Commodity Conclave is an important platform because every commodity has its own supply chain, market structure, and risk factors, making industry-wide discussions essential for market development, MCX MD & CEO Praveena Rai said on Thursday.

Speaking at the event here, Rai said the conclave provided a unique platform for stakeholders across commodity value chains to exchange ideas and address emerging challenges.

“This conclave is very important because there are financial participants on one side and you see each and every commodity. Suppose crude oil and natural gas or gold and silver, copper, aluminum, zinc or cardamom, each commodity is a separate supply chain,” she said.

Rai noted that every commodity functions within a distinct ecosystem, with differences in production, imports, refining, inventory management, industrial demand, and exposure to market volatility.

She said global economic conditions and geopolitical developments also affect commodities differently, underscoring the need for focused discussions among market participants.

“Their production, import, refining, inventory management, industry, and what is the volatility of the commodity, what is the impact of the global environment, what is the impact of the geopolitical environment, each commodity is different. I think all the participants are here including international participation, so we are very happy and I think very good conversations are there,” she told IANS.

According to Rai, the conclave witnessed participation from both domestic and international stakeholders, enabling conversations on a broad range of commodities, including crude oil, natural gas, gold, silver, copper, aluminium, zinc, and agricultural products.

She said such interactions are important for improving market understanding and strengthening India’s commodities landscape.

The event also featured discussions on the future of electricity derivatives in India. Arun Goyal, former member of the Central Electricity Regulatory Commission (CERC), said the session brought together experienced industry professionals who shared recommendations for deepening the country’s electricity derivatives market.

Goyal, who moderated a panel on electricity derivatives, said India’s market in this segment remains relatively underdeveloped compared to global benchmarks.

He stressed the need for greater market depth and participation to support the evolving power sector and improve risk-management tools for stakeholders.

–IANS

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