Exchange secretary JP Sil told The Financial Express that the resumption of futures trading in sackings has brought about a rejuvenation in the exchange's business.

"After the resumption of futures trading in hessian in 1992, the exchange began recording a surplus. However, in 1995-96 and 1996-97 the exchange registered a deficit but this year we are likely to be back on the surplus path, thanks to the resumption of sackings future and introduction of "laga" or transaction fees," Sil said. Only a couple of months back, the exchange has started charging members for each and every transaction at the rate of 50 paise for every 50 bales of hessian and 25 bales of sacking transacted. On a daily average the exchange earns about Rs 1,000 as transaction fees.Sil, however added that the auditof the exchange's accounts are currently on. So they are not in a position to make any formal declaration.In the last three months, the exchange has witnessed an average daily transaction of 2,000 bales of hessian and 48,000 bales of sackings', at around Rs 1.5 lakh.

However, with the introduction of futures in jute sackings, business in hessian futures have been sliding. The secretary felt that a dearth of hessian export orders is the reason behind it.

"Yes we have noticed a fall in the hessian business but that has nothing to do with the introduction of futures in sackings. Instead I feel that there are not many exports orders for hessian, so the members are more interested in the jute sackings," Sil stated.

Despite this turnaround, the exchange is still eagerly waiting for the introduction of futures trading in raw jute.

"This is just the beginning. We are still waiting for the raw jute futures to resume. Once that is on, the exchange will have no time to look back as members, brokers, transactionsboth in terms of volumes and value will keep on increasing," Sil added.

Introduction of raw jute futures trading was recommended by the Kabra Committee and it has been accepted by the Union government. The former finance minister, P Chidambaram has already announced that it will be resumed in his 1997 budget speech.

However, the West Bengal state government is strictly against it. A member of exchange asks: "The matter is in the Central list. If the union government is willing to resume raw jute futures it can easily do so. What is the need in taking an approval from the state government."

Sil added that the exchange is fully geared to meet the challenges of raw jute futures. "We have made the necessary changes in the bye-laws and have also computerised our exchange. Each and every deal is entered in the computers and the position of a broker is known at the end ofthe day. The process is totally transparent," he said.