Commodity exchanges Q1 turnover drops 65%
These bourses’ April-June turnover was Rs14.55 trillion, down from Rs41.45 trillion in the same period a year ago
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New Delhi: The turnover of commodity exchanges fell by 65% to Rs.14.55 trillion in the first quarter of the current fiscal due to poor volumes in most commodities, the Forward Markets Commission (FMC) said.
The turnover at these commodity bourses stood at Rs.41.45 trillion in the same period last year. Much of the fall was seen in bullion, followed by energy, metals and agricultural commodities, FMC data showed.
According to the FMC, the turnover from bullion fell by 73% to Rs.5.23 trillion in April-June this year, against Rs.19.38 trillion in the same period a year ago.
Similarly, the business from futures trading in energy commodities such as crude oil declined by 70% to Rs.3.18 trillion from Rs.10.45 trillion, while the turnover from metals dropped by 61% to Rs.3.12 trillion from Rs.7.93 trillion in the review period.
The turnover from agriculture commodities also fell by 18.23% to Rs.3 trillion in April-June of this year, as against Rs.3.67 trillion in the corresponding months of 2013-14.
Analysts attributed falling volumes to higher transaction costs after the imposition of the commodity transaction tax (CTT) and a dent in investors’ confidence in the wake of a Rs.5,600 crore payment crisis at the commodity spot exchange NSEL (National Spot Exchange Ltd).
There are five national and nine regional level bourses operating in the country.