A study on evolution, working and the current scenario of the commodity market in India
- What is commodity market?
- Definition of commodity market
- What is a commodity exchange?
- What is commodity futures?
- The objectives of commodity futures
- Benefits of commodity futures markets
- History of evolution of commodity markets
- History of commodity market in India
- Legal framework for regulating commodity futures in India
- International commodity exchanges
- Questionnaire for investors
- Quantitative analysis
- Qualitative analysis
- Questionnaire for brokers
- Questionnaire for officials
- Terms and definitions related to commodity market
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. [...]
[...] Commodities Traded at MCX:- Bullion:- Gold, Silver, Silver Coins, Minerals:- Aluminum, Copper, Nickel, Iron/steel, Tin, Zinc, Lead Oil and Oil seeds:- Castor oil/castor seeds, Crude Palm oil/ RBD Pamolein, Groundnut oil, Mustard/ Rapeseed oil, Soy seeds/Soy meal/Refined Soy Oil, Coconut Oil Cake, Copra, Sunflower oil, Sunflower Oil cake, Tamarind seed oil, Pulses:- Chana, Masur, Tur, Urad, Yellow peas Grains:- Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley, Spices:- Pepper, Red Chili, Jeera, Cardamom, Cinnamon, Clove, Ginger, Plantation:- Cashew Kernel, Rubber, Areca nut, Betel nuts, Coconut, Coffee, Fiber and others:- Kapas, Kapas Khalli, Cotton (long staple, medium staple, short staple), Cotton Cloth, Cotton Yarn, Gaur seed and Guargum, Gur and Sugar, Khandsari, Mentha Oil, Potato, Art Silk Yarn, Chara or Berseem, Raw Jute, Jute Goods, Jute Sacking, Petrochemicals:- High Density Polyethylene (HDPE), Polypropylene Poly Vinyl Chloride (PVC) Energy:- Brent Crude Oil, Crude Oil, Furnace Oil, Middle East Sour Crude Oil, Natural Gas National Multi Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-mutualised Electronic Multi Commodity Exchange in India. [...]