Commodity Market is that market where raw commodities
are traded in a regulated manner with standard transactions.?? Indian
Commodity Market has a long history and organized commodity derivatives
in India started way back 1875, it was just after 10 years when
commodity market started in Chicago. Well in India, people were not
having positive reviews for this and majority has a view that commodity trading
leads to unnecessary speculations. And as result of which, after
independence, commodity options trading and cash settlement of commodity
futures was banned in 1952.
After that the commodities derivative markets was dismantled and remained dormant for over a time of four decades (40 years). Then in new the millennium government took a bold step with a complete change in the policy. Government actively started promoting derivatives market actively since 2002. And since then, Indian commodity marketexperienced. Number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which might cross the $ 1 Trillion mark in 2006. However, there are several impediments to be overcome and issues to be decided for sustainable development of the market.
After that the commodities derivative markets was dismantled and remained dormant for over a time of four decades (40 years). Then in new the millennium government took a bold step with a complete change in the policy. Government actively started promoting derivatives market actively since 2002. And since then, Indian commodity marketexperienced. Number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which might cross the $ 1 Trillion mark in 2006. However, there are several impediments to be overcome and issues to be decided for sustainable development of the market.
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