The PSMA appreciated government's endeavour and termed it as a great and revolutionary step because it would ensure complete transparency of prices and would serve as a benchmark for trading and selling of the commodity as per international norms.
Javed said that with a contract size of 10 tons a lot, participation from general public is also anticipated, which would strengthen the market base and promote healthy competition.
He said that in the past the industry had been maligned for manipulating the prices of sugar, and listing of sugar would eliminate the stigma attached to the industry as market forces would determine the price according to supply and demand.
He said that currently refined white sugar is traded at London International Financial Futures and Options Exchange and raw sugar contracts are traded in New York Board of Trade where the contract sizes are large and the entire world trade takes place based on these prices.
According to PSMA, the volume on Pakistan Mercantile Exchange manifests investors confidence both from Pakistan and abroad and with the inclusion of sugar on PME it would generate further interest for investment. Javed lauded the efforts of Samir Ahmed for making PME a success and encouraging investors to benefit from the dynamics of trade in almost all major commodities. On the proposal of derivative trading, PME Managing Director promised that when the futures contracts are listed he would take up this matter with SECP for approval.