The Chief Executive Officer of the Dubai Multi Commodities Centre (DMCC) has highlighted to an audience of high-level industry executives the current opportunities for the establishment of pulses futures trading.

Addressing the Australian Grains Industry Conference in Melbourne, Australia, recently, Dr David Rutledge said that futures trading in pulses would increase contract integrity and reduce volatility. Additionally, he pointed out that the establishment of such a market would allow farmers and marketers to hedge their crops in a manner similar to that which is already being done for other major commodities.
Highlighting the role that could be played by DMCC and its futures exchange affiliate Dubai Gold & Commodities Exchange (DGCX), Dr Rutledge said: “Dubai is ideally situated in a region with a growing demand for pulses and is located close to India, the world’s leading producer and importer of pulses. Capitalising on DMCC’s free-zone status and industry-specific infrastructure, DMCC is the ideal commodities trading centre to introduce a pulses futures contract.” 
Pulses are crops that are harvested solely for their dry grain and include, for example, kidney, pinto, lima and navy beans, dry peas, chickpeas, lentils and garbanzos. An important food crop, pulses form part of a staple diet for a large number of people around the world, especially in developing countries.
In recent years, sustained population growth and dietary preferences have led to an increased demand for pulses in the Middle East and North Africa region. The region has emerged as an important market for pulses, and today is the second largest importer of pulses worldwide, importing over 1.08 million  tonnes.
Dr Rutledge described to the audience a potential pulses futures contract of a size of 10 tonnes that could include yellow peas, chickpeas, pigeon peas, black matpe and red lentils. Although the contracts would be largely settled on paper, said the DMCC CEO, a provision could allow for physical delivery to warehouses at major international ports or FOB export ports.
DMCC was created in 2002 as a strategic initiative of the Dubai Government to establish a commodity marketplace in Dubai. Rated ‘A’ by Standard & Poor’s, it provides the market infrastructure that brings together a wide range of commodities activities, and is committed to serving the needs of participants in the gold, diamonds and commodities markets.