MCX managing director Jignesh Shah flanked by Assocham chairperson S.K. Jindal (left) and FMC chairman S. Sundareshan in Calcutta on Monday. A Telegraph picture

Calcutta, Aug. 28: At a time when the fate of the Calcutta Stock Exchange (CSE) is uncertain, commodity exchanges are gaining coinage in the state.

The Multi Commodity Exchange of India Ltd (MCX) has suggested a revival package for the century-old stock exchange to the Bengal government.

“We have proposed to set up a commodity exchange using the existing infrastructure of the CSE. It will have a commodities futures market, commodities spot market and capital market under one umbrella,” MCX managing director and chief executive Jignesh Shah said.

Shah accompanied an Assocham delegation that met chief minister Buddhadeb Bhattacharjee and finance minister Asim Dasgupta and handed over a report on the ways the state government can attract Rs 50,000 crore investment in agriculture, food-processing, information technology, BPO, biotechnology and water management.

“The government has given us the mandate to prepare a blueprint for the revival of the CSE and we will submit it in September,” Assocham president Anil K. Agarwal said.

Earlier, Ernst & Young (E&Y) had prepared a report for alternative business prospects for the CSE. The report had suggested that the bourse could diversify into commodity trading by setting up a commodity exchange at its property near EM Bypass, which is lying vacant.

However, MCX might not use the E&Y report to prepare its blueprint for the revival of the exchange. “I have a blueprint ready with me,” said Shah.

“We haven’t spoken to the exchange officials as yet,” he added.

Though the Bombay Stock Exchange has agreed to provide a trading terminal to the Calcutta bourse for a one-time payment of Rs 10 crore, CSE member brokers are not optimistic about their business future.

“A direct membership to a national commodity exchange can be a lucrative proposition,” Shah said.

“The daily turnover of commodity futures trade in the three national commodity exchanges — NMCE, NCDEX and MCX — is between Rs 14,000 crore and Rs 16,000 crore. MCX’s turnover is about Rs 8,000 crore a day, whereas the daily total turnover of the capital market segment of BSE and NSE is less than Rs 8,000 crore at present,” said Shah.

MCX has already done the same thing at the Rajkot Stock Exchange and set up a commodity exchange there alongside the existing bourse. “However, the same model may not be replicated in Calcutta,” Shah said.

MCX’s interest in setting up commodity exchanges in Kerala, Rajasthan and Bengal indicates its renewed thrust in agricultural commodity trading. As of now, only mentha oil and potatoes are the most liquid agri-commodities on the MCX platform.

MCX is looking for volumes in spices trading from its Rajkot exchange.