Commodity Trading Market
There are 2 major kinds of markets in India. These markets are the Bond Market and the Commodity Trading market. Here, we will be discussing more about the later one. The Commodity trading market in India deals with all the touchable markets which we come across in our mundane activities.
These Commodity trading markets enable people to exchange goods for money and vice versa. These goods or commodities can be anything and can belong to any sector may it be agricultural, mineral, fossil and many more. The commodity trading market observes the trading of various commodities such as cereals, ginned as well as un- ginned cotton, pulses, oils, jute, sugar, gur, cotton, oilseeds, coffee, tea, jute products, potatoes, onions, petrochemicals, gold , silver, crude, metals and many more commodities.
The regulator for the commodity trading market in India is the Forward Markets Commission. It is similar to SEBI (Securities and Exchange Board of India) which performs the role of protecting the interests of investors in securities. The commodity market in India is mainly influenced by the demand and supply equation. Various external factors such as social changes, weather, policies of the government, global factors drive the commodity market as well.
The commodity trading market in our country is said to have a daily turnover of 120 Billion rupees to about 150 Billion rupees on an average. The total commodities derivatives trade value forms 66% of India’s GDP (Gross Domestic Product). It is also believed by a lot of people that this percentage will only keep rising in the future.
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