Commodity exchanges do roaring biz

Futures trading is here to stay. That is the message emerging from the commodity exchanges in India. Futures trading in commodity exchanges reached a whopping Rs 8,97,816 crore (Rs 8,978.16 billion) till June-end in the current financial year.

Since the government has put a restriction on new agricultural commodities till it decides the issue of impact of Futures trading on prices, the business has shifted to non-farm counters.

Releasing the fortnightly data of turnover, the Forward Markets Commission, the regulator for the commodity markets, said, "The value of trade during April-June period of this financial year is Rs 8,97,816.52 crore (Rs 8,978.16 billion)."

According to FMC, the turnover of three national-level and 20 regional exchanges during the second fortnight of last month declined by 12.62 per cent to Rs 1,31,754.09 crore (Rs 1,317.54 billion) from Rs 1,50,796.26 crore (Rs 1,507.96 billion) in June 1-15 this year.

Trading at the leading commodity exchange, MCX, was hit in the second fortnight as its turnover dipped by about 12 per cent to Rs 97,897.36 crore (Rs 978.97 billion) from over Rs 1,00,000 crore (Rs 1,000 billion)

in the previous fortnight.

At MCX, copper trading recorded a record Rs 22,622.61 crore (Rs 226.22 billion), surpassing gold which stood at Rs 20,397.97 crore (Rs 203.97 billion) in the June 16-30 period. Other contracts that attracted major business were silver, crude oil, zinc, nickel, natural gas and aluminium.

The turnover at leading agri-commodity exchange NCDEX too slid to Rs 28,627 crore (Rs 286.27 billion) from Rs 33,501 crore (Rs 335.01 billion) in the fortnightly review period.

However, the trading at Ahmedabad-based national exchange, NMCE, improved in the second fortnight of June to Rs 671 crore (Rs 6.71 billion) from Rs 658 crore (Rs 6.58 billion) in the previous fortnight. Interestingly, the turnover of some of the regional commodity exchanges were higher than the value of trade at NMCE during June 16-30.

The turnover of 20 regional exchanges recorded at Rs 4,558.56 crore (Rs 45.58 billion) led by Indore-based National Board of Trade with Rs 2,894.08 crore (Rs 28.94 billion) and followed by Hapur's Chamber of Commerce which registered a business of Rs 876.52 crore (Rs 8.76 billion) in the fortnight.