Trading in commodities futures rises again after two years

After falling for two years, futures trading in agri-commodities grew 48% in 2009 over the previous year to Rs10.88 lakh crore.

After falling for two years, futures trading in agri-commodities recovered in 2009 and grew 48% over the previous year on the back of the government lifting the ban on fututres trading in five farm items, the Economic Survey said on Thursday, reports PTI.

"Agriculture commodity futures staged a remarkable recovery after steady decline over the last two years," the pre-Budget statement on the health of the economy said.

The turnover from agri-futures rose 48% to Rs10.88 lakh crore in 2009 from Rs5.22 lakh crore in the previous year, it said.

The Survey noted that the year 2009 started on an optimistic note after the government revoked the ban on futures trading in chana, soy oil, rubber and potato in December 2008, while the ban on wheat trading was lifted in May 2009.

The ban on trading in sugar futures, however, will remain till September this year, it added.

According to the Survey, the total value of trade in the commodities futures market rose to Rs70.90 lakh crore in 2009 from Rs50.34 lakh crore in 2008.
The Multi Commodity Exchange (MCX) recorded the highest turnover of Rs59.56 lakh crore in 2009, followed by NCDEX at Rs8.05 lakh crore and NMCE at Rs1.95 lakh crore.

Farm commodities, bullion and energy accounted for a large share of the items traded in the commodities futures market last year.

Currently, there are four national level and 19 regional commodity exchanges in the country.
 

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