New Delhi: The turnover on commodity exchanges fell 6.4% in the first four months of this fiscal after the government banned futures trading in wheat and rice and changed contracts in some other items.
According to data released by commodity market regulator Forward Markets Commission (FMC), the turnover declined to Rs11.79 trillion during April-July this fiscal as against Rs12.60 trillion in the same period of the last financial year.
Trading in the futures market during the second fortnight of July dipped by 2% to Rs1.64 trillion compared with Rs1.68 trillion in the year-ago period.
However, turnover at the three national and 20 regional exchanges during 16-31 July improved over the previous fortnight’s business of Rs1.17 trillion.
The UPA government had banned futures trading in wheat and rice on 28 February and changed provisions related to certain other goods following pressure from its Left allies, and charges that forward trading in these bourses was resulting in rising prices of essential items.
According to FMC, gold, copper and crude oil recorded the highest trading volume at the MCX (Multi Commodity Exchange of India). MCX’s turnover rose to Rs1.24 trillion in the second half of July from Rs1.03 trillion in the year-ago period.
During the last fortnight, total value of trade in all gold contracts was Rs28,338 crore. The net open position for August delivery was at its highest at 11,254kg on 16 July.
The total value of trade in copper was Rs22,303.5 crore during the fortnight, while the commodity’s net open position in the near month contract was at its highest at 16,278 tonnes on 19 July. Crude oil turnover, too, witnessed the highest turnover of Rs21,617 crore.
Gold contracts came second in terms of business at the National Commodity and Derivatives Exchange (NCDEX) with its turnover reaching Rs4,844 crore in the 16-31 July period.
Guar seed was the top traded commodity at NCDEX with its turnover at Rs7,635 crore.