Commodity futures trading in India, the world’ s biggest gold and sugar user, surged 52 per cent in value to a record last year, driven by bullion and farm goods.
The value of commodities traded on bourses, including the Multi Commodity Exchange of India Ltd, advanced to Rs 181.3 lakh crore ($3.5 trillion) in the year ended March 31 from Rs 119.5 lakh crore a year earlier, the Forward Markets Commi-ssion, the industry regulator, said on its website on Wednesday.
Bullion worth Rs 101.8 lakh crore was traded last year, 85 per cent more than a year earlier, as gold futures in India rallied to a record in December, data from the regulator showed.
Trading in farm commodities gained 51 per cent, while the value of trade in crude oil, natural gas and other energy products climbed 23 per cent, it said.
“ It’ s more of a price jump, rather than a participation increase,” said Kishore Narne, head of research at Anand Rathi Commodities Ltd, in Mumbai.
Commodity futures trading volumes may decline this year after the regulator banned some contracts and increased margins, Narne said.
The market regulator this month barred excha-nges from offering new contracts in soybeans, while raising margins on trading in mustard seeds, gram and potatoes to curb speculation.
Domestic traders, producers and consuming companies are the main participants in India’ s 21 exchanges. Foreign funds aren’ t allowed to buy and sell commodity futures.
Source: Business Standard