A commodity exchange is a centralized location where buyers and sellers carry out transactions, with or without physical commodities, under a set of clearly defined rules and regulations.
In theory, commodity exchanges can contribute to market development by reducing transactions costs, improving price discovery, and reducing price risks. Meenakshi Malhotra (2012) in her research paper Commodities Derivatives Market in India: The Road Traveled and Challenges Ahead examine that the commodity price very critical for the existence and growth of any industry and for the economy as a whole. Narender L Ahuja in his research paper Commodity Derivatives Market in India: Development, Regulation and Future Prospects recalls that commodity derivatives arrived in India as early as 1875, barely about a decade after they arrived in Chicago 5.
1. To study the development of agricultural commodity market in India. 2. To study the performance of agricultural commodity market in India from period ( to 2013 2014). 3. To find out the share of agricultural commodities in commodity futures market for period ( to ).
Commodities Futures And Inflation Commodity Futures Commodity Market In India INTRODUCTION TO THE ETHIOPIAN CEMENT MARKET Introduction To The Ethiopian Cement Market Market Analysis Introduction To Market Share Market Size Assessment Market size market entry in India The Advantages And Disadvantages Of Free Market dealing in major commodity exchanges are standardize in nature.
In this paper examine the commodity futures market in India, taking into consideration the history of commodity futures market. And after that I have discussed the mechanism of trading, segments and regulatory framework of commodity market in India. commodity market both in India and at a global level. Since this research is focused on the inter relationship of the spot and futures market, a decription of the features of the commodity stock market with commodity market in India.
This paper examines hedging effectiveness of futures contract on a financial asset and commodities in Indian markets. India, a country with a population of over one billion, has an economy based on agriculture, precious metals and base metals. Thus, trading in commodities provides lucrative market opportunities for a wider section of participants of diverse interests like investors, arbitragers, hedgers, traders, manufacturers, planters, exporters and liberalize commodity markets and in particular commodity futures markets are being developed.
The World Bank initiated the use of market based instruments for dealing with commodity price risks and this has given fresh impetus for research in the area of commodity futures market.