The turnover of commodity exchanges in 2006-07 financial year is likely to touch a whopping Rs 37 lakh crore (Rs 37 trillion) against just Rs 570,000 crore (Rs 5,700 billion) in 2004-05.
According to the commodity market regulator Forward Markets Commission, the total turnover of all the 23 national and regional bourses stood at Rs 35,08,856 crore (Rs 35,088.56 billion) till March 15 of 2006-07 fiscal.
The FMC, which releases market data every fortnight, said the combined turnover of commodity exchanges during the first fortnight of March this year was Rs 182,114 crore (Rs 1,821.14 billion).
The surge has been primarily led by the three leading national bourses -- Multi Commodity Exchange (MCX), National Commodity and Derivatives Exchange (NCDEX) and National Multi Commodity Exchange of India (NMCE), which together account for nearly 94 per cent of the total business.
Interestingly, the turnover of leading agri-commodity exchange NCDEX jumped by nearly 24 per cent to Rs 41,665 crore (Rs 416.65 billion) during Mar 1-15 compared to Rs 33,632 crore (Rs 336.32 billion) in its previous fortnight.
The government banned futures trading in wheat and rice on February 28 when the Budget was presented in Parliament while announcing a freeze on launching new contracts till an expert committee submits it report.
A five-member committee headed by Planning Commission Member Abhijit Sen has been asked to study "the extent of impact, if any, of futures trading on wholesale and retail prices of agricultural commodities" and submit its report within two months.
Meanwhile, the FMC currently considers the possibility of allowing late hour trading in soyabean, soya oil and soyameal after trading hour in coffee was recently extended till 11.30 pm.
Futures trading in bullion, crude and metals are allowed to be traded on the exchange platforms as these commodities are linked to international trade.
The average daily trade volume exceeded Rs 12,000 crore (Rs 120 billion) this year. Large volumes of trade in gold, silver, copper, natural gas, guar seed, wheat, sugar, rubber, mentha oil, pepper, soy oil, cardamom, chillies, urad and jeera generated greater liquidity in MCX and NCDEX.
MCX emerged as the top commodity exchange in terms of value as its average fortnightly turnover has crossed Rs 132,000 crore (Rs 1,320 billion) having a share of more than 72 per cent in the fortnightly turnover of all commodity bourses.
The MCX also took the Indian commodity trading business to global arena by forging international tie-ups and is all set to launch an exchange in Mauritius after one already set up in Dubai.