Multi Commodity Exchange of India (MCX) has signed an agreement with the All India Glass Manufacturers’ Federation (AIGMF) for market development in the energy futures segment.
The Memorandum of Understanding (MoU) aims to provide fundamental and technical training to the market participants, and develop and provide services and facilities for the overall improvement of the commodity futures market and market practices; particularly in the energy segment.
Crude oil by-products are used as an energy source in glass melting furnaces; therefore, crude oil price volatility affects the bottom line of the glass manufacturers. MCX will educate the market participants and enable glass manufacturers to take advantage of the commodity futures market to hedge their crude oil price exposures.