Future of Commodity Market in India

The shadow of uncertainty about the existence of the Commodity
Future markethas always been there in India. So the market participants & every
member of this community have always been in multilema about its full size growth.
Because of this ambiguity, the very market has not got as much response
as it should have got.

So, my dear readers, through this editorial, I have tried to share few latest
facts which will not only help to boost up your confidence in this market
but also help you out to rejig your strategy to be early bird to catch the worm.

As per one of the latest report ASSOCHAM the size of commodity future market is
likely to reach more than double by 2010 to Rs.1200000 crore. Along with the
growing size of commodity market, the size of employment is also bound to vault
and it is expected that this market may create
additional employment for at least 100000 people.

Recently in a Seminar in Mumbai, a FMC’s member very strongly favored the
participation of Banks as traders. Earlier the same had been proposed by
ASSOCHAM as well. If it gets materialized, this will bring much more liquidity
& better practices to the market than today it is. Banks could also work as
mediators between cultivators and FMC to discover better prices for farmers’
produce. Commission is also planning to bring small and marginal farmers to
the exchanges through aggregators. For this, banks will be asked to provide
credit to the aggregators who will in turn handle the margins and mark
to market, enabling hassle-free trading for farmers.

So, Future prospect of commodity derivative trading is upbeat in India.
I hope, every member of this community will grow like any thing.
There is no scope for doubtfulness.