Mumbai-based Multi Commodity Exchange of India Ltd or MCX, an independent and demutualised exchange plans to bring major changes in the commodities sector by introducing a platform for traders and poor farmers.

"The MCX will act as a catalyst to ensure future prices of commodities in advance, which will directly benefit farmers, traders, exporters and larger industrial consumers of agri-commodities," said Joseph Massey, MCX deputy managing director.

Massey told rediff.com that by September the MCX would start live trading of commodities in India.

"We have already started a drive to appoint intermediaries from the existing commodity exchanges, securities exchanges and other sections of trade and industry at national level, and this will be completed by next month," he said.

Till date commodities trading is carried out in about 7500 mandies (small markets) and over 30 major markets in cities across India in an organised way in cash on daily basis. MCX will provide an opportunity for them to decide their future plans in advance through it.

It will initiate online trading initially in key commodity segments including bullion, oils and oilseeds, grains and pulses and soft commodities like cotton, sugar, and spices and plantation covering around 12-15 base commodities. It will extend the trading list to make the offering more comprehensive.

Massey said MCX is geared to provide nationwide access to multi-commodities through an advanced, cost efficient automated platform.

MCX has tied up with HDFC Bank and Induslnd Bank for electronic fund transfer facilitating seamless settlement, connecting 100 cities through 250 branches across India.

When asked as to how the exchange will benefit poor farmers, Massey said MCX will help to organise themselves as cooperatives and decide about the market prices of their commodities.

"It is going to benefit India's 70 per cent population because it will come as a boon for the agriculture sector," he said.

He said that MCX has ambitious plans like roping in non-resident Indians who are willing to venture into the commodity business.