Commexes turnover dips by 4.5% in Apr-Oct

Written by Press Trust of India | New Delhi | Updated: Nov 20 2012, 08:14am hrs
The turnover of the country's 21 commodity exchanges declined marginally by 4.53 per cent to R101.55 lakh crore till October of the current fiscal due to lower participation in bullion trade, according to the Forward Markets Commission (FMC).

These exchanges had made a business of R106.36 lakh crore in the same period last year, the commodity markets regulator FMC said in a statement. Barring bullion, there was substantial jump in the turnover of energy, metals and farm items during the period under the review, the FMC said.

Business from energy items like crude oil rose by 42 per cent to R22.51 lakh crore during the April-October period of the 2012-13 fiscal, as against R15.84 lakh crore in the same period last year.

While the turnover from metals like copper increased by 21.25% to R18.73 lakh crore from R15.45 lakh crore, business from farm items rose by 27.51% to R13.81 lakh crore from R10.83 lakh crore in the period under the review, according to the FMC data.

However, the turnover from bullion fell by 27.63% to R46.48 lakh crore till October of the current fiscal from R64.23 lakh crore in the year-ago. The regulator said special margins to the tune of 20% have been removed effective from October 20 on turmeric traders keen to buy the commodity through November and December contracts on the NCME and NMCE platforms.

FMC also said the government's advisory panel, which met for the first time on October 16, has suggested relaunch of guar futures, which were banned since March this year.

The committee members put forward many useful suggestions on increasing hedging, benefits to farmers, and for better alignment of future market with physical market. They also suggested allowing the relaunch of Guar contracts," the commission said.

At present, the country has five national and 16 regional level commodity exchanges in the country.

Recently, the FMC gave approval to the Universal Commodity Exchange to operate as a national bourse.