What is Commodity? - Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines goods as every kind of movable property other than actionable claims, money and securities. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices.
[...] Security Deposit Deposit Charges Transaction Charges Membership Details for Category Admission Initial Annual Net worth Criteria Fees Security Subscription Deposit Corporate Partnership Individual Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Lakhs Chapter 7 Current Scenario in Indian Commodity Market Need of Commodity Derivatives for India:- India is among top 5 producers of most of the Commodities, in addition to being a major consumer of bullion and energy products. Agriculture contributes about 22% GDP of Indian economy. It employees around 57% of the labor force on total of 163 million hectors of land Agriculture sector is an important factor in achieving a GDP growth of 10%. [...]
[...] The futures market trade in futures contracts primarily for the purpose of risk management that is hedging on commodity stocks or forward buyers and sellers. Most of these contracts are squared off before maturity and rarely end in deliveries. Hedging: - Means taking a position in futures market that is opposite to position in the physical market with the objective of reducing or limiting risk associated with price. In the money: - In call options when strike price is below the price of underlying futures. [...]
[...] The Government of India has taken a number of policy measures, such as removal of iron & steel industry from the list of industries reserved for public sector, deregulation of price and distribution of iron & steel and lowering import duty on capital goods and raw materials, since liberalization for the growth and development of Indian iron & steel industry. After liberalization India has seen huge scale addition to its steel making capacity. The country faces shortage of iron and steel materials. [...]
[...] So efforts should be done to minimize the risk in commodity investment and make peoples about minimum risk in commodity investment Opinion about Commodity Market Advertisements (Expressed by those who know commodity market) There is no second opinion amongst commodity investors, that commodity market advertisements do not give all the necessary information. Qualitative Analysis 1. Investment preferences: - Most of the investors prefer least risky investment which gives higher returns. That is why majority of sample) of people interested in investments other than Share and commodity market. [...]
[...] At the time sowing and before harvesting price tend to rise in a view of tight supply situation. Weather has profound influence on wheat production. Temperature plays crucial role towards maturity of wheat and productivity. Change in Minimum Support Price (MSP) by Govt. and the stock available with Food corporation of India and the release from official stock influence of the price. Though, international trade is limited, the ups and downs in the production and consumption at all the major/minor producing and consuming nation dose influence the long term price trend. [...]
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