By Thomas Kutty Abraham/Bloomberg
Mumbai: Turnover on the country’s 23 commodity exchanges increased 13.5% in the first two weeks of the month, helped by trading in gold, silver and copper futures.
Commodities worth Rs1.51 lakh crore ($36 billion) were traded between 2 April and 14 April, compared with Rs1.33 lakh crore a year ago, the regulator Forward Markets Commission said in a statement on its Web site.
Commodities trading broke records in many countries in 2006 as economic expansion in China and India, the world’s fastest- growing major economies, and lack of new capacities, sent oil, gold, copper and zinc prices to records. Indian exchanges are closed to overseas funds, although the country is the world’s largest user of gold and the No.2 producer of sugar and rice.
Turnover on the Multi Commodity Exchange of India Ltd, the world’s third-biggest bullion bourse after exchanges in London and Tokyo, and the nation’s 22 other bourses surged 72% to Rs35.76 lakh crore in the year ended 31 March from Rs21.34 crore a year earlier.
Multi Commodity Exchange, in which Fidelity International Ltd, a unit of the world’s biggest mutual fund company, owns 9%, traded commodities worth Rs94,690 crore, or 63% of the nation’s total. Rival National Commodity & Derivatives Exchange Ltd made up a third of the trades.
Goldman Sachs Group Inc. owns 7% of the National Commodity exchange.
A futures contract is an obligation to buy or sell a commodity at a set price for delivery by a specific date.