Multi Commodity Exchange of India (MCX), a leading commodity exchange company, has decided to start trading in Aviation Turbine Fuel (ATF) from Monday, providing defense to the airlines and refiners against all time high crude oil prices of $146 a barrell.

The trading will start on 7 July, including six contracts, lasting till December. The contracts will expire on 26th of every month.

Individual inverstors will be able to buy or sell a maximum of 6 lakh barrels in one cotract, whereas the upper limit for the registered clients will be 3 million barrels or 15% of the volume, whichever is higher.

MCX has fixed the minimum trading limit at 100 barrells and the prices will be displayed in Rupee per barrell. Also, to prevent manipulation, the daily price limit has been set at 4% by the market regulator, and the trading will stop after additional 2% variation in prices.

India is self-sufficient in the production of ATF with an annual production of 78.05 lakh tons, out of which 36 lakh tons are exported every year.