In a unique initiative for training management students for the commodities market and creating awareness about the various opportunities that it provides, Indian Commodity Exchange Ltd. (ICEX) has signed an MOU with Mumbai based N. L. Dalmia Institute of Management Studies and Research (NLDIMSR). The joint collaboration will facilitate training of the students in all aspects of commodities trading including marketing and warehousing management. This initiative will provide trained manpower in today’s highly demanding commodities market space.
As a first step; ICEX and NLDIMSR today conducted the first commodity market awareness certification programme for 165 students of the Institute. The students were awarded the certificate at a function today by Mr. Rajnikant Patel, Managing Director & CEO, ICEX in the presence of Prof. P. L. Arya, Director, NLDIMSR.
On this occasion, Mr. Rajnikant Patel, Managing Director & CEO of ICEX said, “We have designed the programme with the specific aim spreading awareness of the emerging commodities markets among the students community. In the current competitive and specialised commodities market scenario in India and globally, there is a huge potential for induction of trained manpower resource in this sector and this joint initiative is a significant step in that direction. Commodities in all its forms touch the lives of every single human being. So vast is its reach that there is a tremendous need for bringing in transparency, efficiency, better infrastructure, grading facilities and effective hedging opportunities to the eco system.”
Prof. P. L. Arya, Director, NLDIMSR, said, “We are happy to tie up with Indian Commodity Exchange and feel that such a programme will enhance the capability and employability of our students. This partnership will also equip them to take up the challenges in the vast and complex commodity market space.”
Commodities market scenario:
The size of commodities trading in India is of the tune of Rupees 88.62 lakh crore in 35 Agri based commodities and 19 non-agri based commodities. Over the period of 8 years commodity market has grown at a CAGR of 201%. Commodity Derivative trade value relative to GDP in India was 5.81% in 2003-2004 in India. In 2007-2008 it rose to 72% of India’s GDP. In US, China and Brazil it is 90%, 85% and 200% of its GDP respectively. Globally commodity derivatives market are at 30-40X multiple while in India it is only at 3X multiple.