Commodity futures trading up 70%

Futures trading on commodity exchanges rose by more than 70 per cent to Rs 36.76 lakh crore in 2006-07 compared with Rs 21.55 lakh crore registered in 2005-06. In 2004-05, the total turnover on the three national and 20 regional commodity bourses stood at Rs 5.70 lakh crore.

According to data released by commodity market regulator Forward Markets Commission (FMC), during March 16-31 of the last financial year total turnover from futures trading was Rs 1.67 lakh crore. In the first half of March, the turnover stood at Rs 1.82 lakh crore.

The turnover would have hit the Rs 37 lakh crore level, but for this decline in business in the second half of March, a commodity analyst said.

The overall surge in the turnover of commodity exchanges in 2006-07 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 more than 97 per cent of the business.

MCX has emerged as the top commodity bourse in the last fiscal with a share of 62.3 per cent in the total turnover of futures trading followed by NCDEX with 31.7 per cent share.

Interestingly, leading agri-commodity exchange NCDEX continued to march ahead with its turnover rising to Rs 42,982 crore during March 16-31 from Rs 41,665 crore during Mar 1-15 and Rs 33,632 crore in February 16-28.

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. Earlier, urad and chana futures were banned.

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.