Date:22/06/2005 URL: http://www.thehindubusinessline.com/2005/06/22/stories/2005062201331000.htm

Back `Commodity futures market likely to more than treble by 2010'

Our Bureau

New Delhi , June 21

THE commodity futures market is expected to grow by over 352 per cent to touch an estimated business of Rs 12,00,000 crore and will have the potential to generate additional employment for over one lakh people by 2010, according to the findings of a study on "Commodity Futures Bright" conducted by the Associated Chamber of Commerce and Industry of India (Assocham).

The size of the commodity futures market at present is within the range of Rs 3,40,000 crore.

The study also points out that besides allowing banks and FIIs to enter the commodity futures market and having uniform transaction charge for all commodities, allowing trade up to midnight in commodities with international linkages can also be a major step towards the reform movement.

Presenting the study here, Mr Mahendra K. Sanghi, President, Assocham, said, "Such reforms would not only enhance depth but would also increase the liquidity in the market."

The study also suggests that if futures exchanges were used for purchasing grains for the public distribution system, it will ensure remunerative returns to farmers and also will curtail the Government's storage costs.

Further development of the futures market will enable diverse market functionaries to cope with the problem of price volatility in the global markets, feels the chamber.