Reliance may enter futures trading to stabilise prices of staples

RIL_logoHaving launched , 11 of its “Reliance Fresh” neighbourhood, convenience stores, in Hyderabad on Friday, Reliance, subject to achieving adequate volumes, may consider futures trading to mitigate the price risk, reports PTI.

The move to take the future trading route could be significant considering the price volatility of staples like wheat, sugar, pulses and vegetables like onions and potatoes.

“Currently there are no specific plans to enter into (futures) trading, but when there are sufficient volumes and if it is required to mitigate the price risk then we may have to do it,” said Sanjeev Asthana, President and CEO (Agri and Food Supply Chain) Reliance Retail.

In the event of entry into futures trading, Reliance will start with hedging staples, he said, adding that “today the quantities are not large enough to warrant such hedging but in time if we have to do it, we will do it”.

At present, the plan was to essentially link the retail store to supply chain, he said, but added that “if we have to use it for the purpose to add further value to the customers we will use it”.

Reliance officials assured that with effective supply chain management, prices would be kept competitive and also be consumer driven.

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