In India commodity markets have been in existence for decades. However in 1975 the Government banned forward contracts on commodities. Later in 2003 the Government of India again allowed forward contracts in commodities. There have been over 20 exchanges existing for commodities all over the country. However these exchanges are commodity specific and have a strong regional focus. The Government, in order to make the commodities market more transparent and efficient, accorded approval for setting up of national level multi commodity exchanges. Accordingly three exchanges are there which deal in a wide variety of commodities and which allow nation-wide trading. They are
- Multi Commodity Exchange (MCX)
- National Commodities Derivatives Exchange (NCDEX)
- National Multi Commodity Exchange (NMCE)
The MCX is Mumbai-based and is promoted by Financial Technologies Pvt Ltd. MCX allows trading on a host of commodities ranging from bullion to grains. Please check the ‘Commodities traded’ menu’. MCX has become the first exchange in the world to launch futures on steel. Recently on 11th August 2004, MCX crossed a peak daily turnover of Rs.950 Crores.
NCDEX is promoted by an elite group of financial institutions including NSE, LIC, SBI, UBI etc., NCDEX also allows trading of futures on a host of commodities.
The following tables indicate the various commodities traded in both exchanges and also the critical information regarding the various contracts.
National Commodities and Derivatives Exchange, NCDEX
COMMODITY |
UNIT OF PRICE QUOTATION |
UNIT OF TRADING |
YIELD/Re. MOVEMENT |
TIC SIZE or TIC |
YIELD/TIC or TIC VALUE |
TRADING SESSION |
PRECIOUS METALS |
GOLD |
10gm |
100gm |
10.00 |
1.00 |
10.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
KILO GOLD |
10gm |
1000gm |
100.00 |
1.00 |
100.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
SILVER |
1KG |
5KG |
5.00 |
1.00 |
5.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
MEGA SILVER |
1KG |
30KG |
30.00 |
1.00 |
30.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
AGRICULTURAL PRODUCTS |
SOYA |
1QT |
10MT |
100.00 |
0.05 |
5.00 |
10:00AM-5:00PM |
SOYA OIL |
10KG |
10MT |
1000.00 |
0.05 |
50.00 |
10:00AM-5:00PM |
CHANA |
1QT |
10MT |
100.00 |
1.00 |
100.00 |
10:00AM-5:00PM |
GAUR SEEDS |
1QT |
10MT |
100.00 |
1.00 |
100.00 |
10:00AM-5:00PM |
TUR |
1QT |
10MT |
100.00 |
1.00 |
100 |
10:00AM-5:00PM |
URD |
1QT |
10MT |
100 |
1.00 |
100 |
10:00AM-5:00PM |
CHILLI |
1QT |
5MT |
50 |
1.00 |
50 |
10:00AM-5:00PM |
TURMERIC |
1QT |
10MT |
10 |
1.00 |
10 |
10:00AM-5:00PM |
PEPPER |
1QT |
1MT |
10.00 |
1.00 |
10.00 |
10:00AM-5:00PM |
WHEAT |
1QT |
10MT |
100 |
0.20 |
20 |
10:00AM-5:00PM |
CASTOR |
20KG |
10MT |
500 |
0.10 |
50 |
10:00AM-5:00PM |
Multi-Commodity Exchange, MCX
COMMODITY |
UNIT OF PRICE QUOTATION |
UNIT OF TRADING |
YIELD/Re. MOVEMENT |
TIC SIZE or TIC |
YIELD/TIC or TIC VALUE |
TRADING SESSION |
PRECIOUS METALS |
GOLD-M |
10gm |
100gm |
10.00 |
1.00 |
10.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
GOLD |
10gm |
1KG |
100.00 |
1.00 |
100.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
SILVER-M |
1KG |
5KG |
5.00 |
1.00 |
5.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
SILVER |
1KG |
30KG |
30.00 |
1.00 |
30.00 |
10:00AM-5:00PM & 6:00PM-11:55PM |
CRUDE |
1BBL |
100BBL |
100 |
1.00 |
100 |
10:00AM-5:00PM & 6:00PM-11:55PM |
AGRICULTURAL PRODUCTS |
SOYA |
1QT |
10MT |
100.00 |
0.05 |
5.00 |
10:00AM-5:00PM |
SOYA OIL |
10KG |
10MT |
1000.00 |
0.05 |
50.00 |
10:00AM-5:00PM |
MENTHA OIL |
1KG |
360KG |
360 |
0.10 |
36.00 |
10:00AM-5:00PM |
POTATO |
1QT |
30MT |
300 |
0.10 |
30.00 |
10:00AM-5:00PM |
KAPAS KHALI |
50KG |
5MT |
100 |
0.10 |
10.00 |
10:00AM-5:00PM |
CARDAMOM |
1KG |
500KG |
500 |
0.50 |
250 |
10:00AM-5:00PM |
INDUSTRIAL METALS |
STEEL LONG |
1MT |
10MT |
10.00 |
1.00 |
10 |
10:00AM-5:00PM & 6:00PM-11:55PM |
Note: NCDEX introduced trading on Saturdays in all eligible contracts with effect from May 15, 2004.
|
