The commodity market in India
has now reached a stage
wherein investors have realized the need to hedge and manage their
risks on the exchange platform. Moreover, commodity markets offer as much
opportunity as do the stock markets. But the commodity market in India is still
in a developing stage when compared to the developed
markets, such as the US, Europe, Japan, and needs a helping
hand from the government and the authorities
concerned to further grow. The infrastructure
facilities, including warehousing, transportation,
etc., need to be upgraded for better coordination.
However, the recent policy changes and upbeat sentiments about the economy have
created a lot of interest and euphoria about the commodity markets.
India is one of the fastest growing commodity futures markets in the
world but does not allow foreign funds and banks to trade in commodities.
Introduction of options trading and foreign fund participation in commodities
will bring in depth to the Indian commodity futures markets and curb
speculation. In order to attract retail
participation, portfolio management services are critical, however, they are not
allowed presently in the Indian commodity bourses. Speedy approval of reforms
is highly important, as allowing banks, foreign funds and PMS will help
boost the growth in the market. We expect the volumes on the commodity bourses
to cross Rs 75,000 cr on a daily basis in the coming years. The present is just a tip
of an iceberg, and as the Indian economy occupies its rightful place in the
world, our commodity markets would be among the largest and most
vibrant. The overall growth of the national spot markets and our seamless
integration with the commodity exchanges is very essential for price discovery and
growth of the markets.
|
