Commodity futures corner 35% mart share in first-half

Trading in commodity futures has been growing at a scorching pace, with the three major commodity exchanges cornering 35 per cent share in the derivatives market in the first half of this financial year compared with 29 per cent in the year ending March 31, 2006. the share was just seven per cent in 2003-04.

The three commodity exchanges in India "" Multi Commodity Exchange (MCX), National Multi Commodities Exchange (NMCE) and National Commodities and Derivatives Exchange (NCDEX) "" clocked 153 per cent rise in turnover at Rs 18, 53,631 crore in the first half of 2006-07 compared with 100 per cent growth registered by stocks and index derivatives on the Bombay Stock Exchange and the National Stock Exchange.

The performance of the commodity exchanges is follows a revamp in contract specifications, focus on region-specific commodities and increased retail awareness.

The introduction of international commodity such as Brent Crude and gold by MCX has also fuelled the rise in the first half of 2006-07.

The turnover in the first half has already touched the 2005-06 level, with NMCE registering a 10-fold growth. NMCE improved its share in the turnover of the commodity exchanges from 1.57 per cent in 2005-06 to 6.06 per cent.

MCX crossed the Rs 100,000 crore mark in the first half with 275 per cent rise in turnover, while NCDEX posted 55.74 per cent increase. MCX's share in the turnover on commodity exchanges went up to 56.93 per cent from 38.38 per cent same time last year.

NCDEX, which commands 72 per cent share in agro commodity turnover, registered 55.7 per cent growth in turnover at Rs 686,081 crore.

The share of NCDEX, however, declined from 60.06 per cent in the first half of 2005-06 to below 50 per cent at 37.01 per cent in the first half of 2006-07.