Kochi (Kerala), March 29, 2016: Multi Commodity Exchange of India Ltd (MCX) and ICAI (Cochin Chapter), jointly organised ‘Kerala State Cost Convention’ in Kochi on March 28, 2016. The theme of the programme was CMA-DNA of Make in India’s Cost Competitiveness.
The event commenced with a keynote address delivered by CMA A Selvam, Chairman, ICAI Cochin Chapter. In his inaugural speech he emphasized on the importance of ‘Make in India’ initiative taken by the government to promote growth of the country’s manufacturing sector.
With Make in India set to take off – the consumption of raw materials in India is expected to increase. While this would be good for the economy overall, volatility in raw material prices has been a global problem over the last few years. Hedging of raw material prices by using MCX futures contracts will be an effective cost management solution for manufacturing units, explained MCX officials, while making a presentation on Hedging.
They further highlighted that commodity exchanges such as MCX have helped commodity stakeholders, including SMEs & MSMEs through providing a platform for price risk management, as well as a source for bringing about price transparency. This has led to financial well-being of the stakeholders, enabled stable growth of SME & MSME units and, thereby, contributed to the stability of this sector.
CMA Sankar P Panicker, Member, Southern India Regional Council of Institute of Cost Accountants of India said, “I carry a strong view that in a strongly competitive business environment, organizations have to look at cost engineering solutions to keep pace with the changing global requirements. Commodities price risk management is also one such cost engineering solutions that helps the industries to control raw material costs thereby making them more competitive and providing better prices to consumers especially to make the ‘Make in India’ more effective.”
“We thank MCX for partnering with us, and for the splendid presentation made by its officials on commodity derivatives market in India, which showcased the dynamics of price risk management in commodities. It was indeed one of the highlights of the 1st Kerala State Cost convention”, Mr. Panicker added.