The Budget announcement is visionary and good for the commodity markets, for which the government should be applauded with highest intensity. It will stimulate huge investment in the warehousing sector since the uncertainty of commodity market viability with respect to the cost of transaction (CTT) has been removed and now it will be at par with top 25 global commodities exchanges which constitute 99.99 per cent of the world’s exchange traded commodity derivative volume.
This announcement will put the Indian commodity market ecosystem at par with international exchanges with respect to cost of hedging, thereby fulfiling the government’s vision of making Indian commodity derivative market competitive on a global canvass.
