Commexes to end year with up to Rs 70 lakh cr turnover

Written by Agencies | New Delhi | Updated: Dec 30 2009, 21:10pm hrs
Intense competition and lifting of trading ban on four agri products will help the commodity futures exchanges end 2009 with a record turnover of up to Rs 70,00,000 crore, up 39 per cent from last year.

The total turnover was at Rs 50,33,872 crore in 2008.

"I expect the commodity futures market to grow to Rs 67,00,000-70,00,000 crore by 2009-end," Forward Markets Commission (FMC) Chairman B C Khatua said.

The year started on a good note, thanks to lifting of ban on futures trading in chana, soya oil, potato and rubber towards 2008-end.

Fuelling competition in the seven-year old market, Indiabulls launched the Indian Commodity Exchange (ICEX) in partnership with state-run MMTC, while Kotak Group got permission to set up a national commodity exchange in association with the Ahmedabad Commodity Exchange (ACE).

At the end of November, the combined turnover of the four national and 19 regional commodity exchanges stood at Rs 62,94,118 crore, which the sector regulator FMC expects to cross Rs 67,00,000 crore by December-end.

The monthly turnover of the commodity exchanges improved during the year driven by demand for agricultural commodities amid fears of a production slump under the twin impact of floods and drought.