Indian commodity exchanges’ turnover stood at Rs 61.68 lakh crore last fiscal due to higher transaction costs and decline in prices of bullion and metals, as per data compiled by the Forward Markets Commission (FMC). This is a drop by 39% compared to the turnover at Rs 101.44 lakh crore in the previous fiscal, 2013-14.
Bullion turnover fell by over 49% to Rs 21.88 lakh crore in 2014-15, from Rs 43 lakh crore a year-ago. Similarly, the turnover of energy commodities declined by 34% to Rs 16.46 lakh crore, from Rs 24.72 lakh crore, while that of metals dipped by 28% to Rs 12.74 lakh crore from Rs 17.61 lakh crore in the review period. The business from agricultural commodities also fell by 34% to Rs 10.58 lakh crore in the 2014-15 fiscal, from Rs 16.02 lakh crore in 2013-14.
The turnover has declined due to higher commodity transaction tax (CTT), which is in place since July 1, 2013. CTT is a tax levied on exchange-traded commodity derivatives in India on the lines of the Securities Transaction Tax. There are currently four national and six regional level exchanges operating in the country.