Financial Daily from THE HINDU group of publications
Thursday, Jul 25, 2002
Financial Daily from THE HINDU group of publications Thursday, Jul 25, 2002 |
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Agri-Biz & Commodities
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Coffee Cofei plumps for new chief — Denies merger options, offer to sell Our Bureau
BANGALORE, July 24 COFFEE Future Exchange of India (Cofei) Ltd on Wednesday announced that Mr Arun Bidappa, Managing-Director of Karnataka Coffee Brokers Pvt Ltd, would take over as its new Chairman. He will replace Mr Ashwin Shah, who has been the Chairman since inception. Cofei runs the coffee futures exchange in Bangalore that currently faces the problem of poor volume turnover. Karnataka Coffee Brokers Private Ltd is the founding member of the Indian Coffee Traders Association (ICTA), which has been successfully conducting private weekly coffee auctions since 1992. A Cofei press release said the Exchange was actively looking into various schemes to revive trading and boost investor participation. "Suggestions include trading in futures contracts of other commodities, including tea, and converting to an Internet-based platform to keep pace with the rapid changes taking place in the commodity sector," the release said. COFEI, under its newly elected Chairman, was confident that it was only a matter of time before trades are executed regularly and volumes reach respectable levels, it said. The decisions to make Mr Bidappa the Chairman and consider various schemes were taken at a Cofei board meeting on Wednesday. The meeting was a sequel to a meet held earlier on July 16. Cofei has been witnessing poor volume turnover due to slump in global coffee prices on projections of a record 37-39 million 60-kg crop in Brazil. Cofei also said denied it had made an offer of sale or merger to any other corporate body or exchange. "No formal offer was made to UPASI either," it said. Cofei, set up in 1998, was the first in the world to begin trading in raw coffee. However, it was discontinued 4-5 months ago on poor response. Cofei now trades in plantation A and robusta cherry AB. Cofei has been through a rough period since October 2001 and it resulted in the exchange shelving its online trading for the open outcry system.
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