The turnover of Commodity exchanges in India has declined by over 11% in the first fortnight of May due to range-bound movement of commodity prices in both agri and non-agri sectors. The levy of the commodity transaction tax (CTT) and traders’ growing interest in riskier assets like equity market have also added additional pressure.
As per report compiled by the Forward Markets Commission (FMC), which is the commodity derivatives markets regulator, showed that all national-level commodity futures exchanges had generated a turnover of Rs 6,17,813.80 crore between May 01 and May 15 this year compared to Rs 6,96,610.72 crore in the corresponding period last year.
On the other hand, the cumulative value of trade between April 01 and May 15 this year recorded a growth of over 13% which stood at Rs 20,95,117.67 crore compared to Rs 18,49,082.55 crore in the same period last year.
The Multi Commodity Exchange (MCX) continued its leadership and edged higher in business with over 90% market share, followed by the National Commodity & Derivatives Exchange (NCDEX), less than 6%. MCX clocked a turnover of Rs 561,009.41 crore and NCDEX Rs 37,016 crore during the first fortnight of May. National exchanges contribute over 99% to overall commodity futures trading business.