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Commodity exchanges' turnover dips by 51% to Rs 3.43 lakh crore

31 Mar 2014 Evaluate

The turnover of commodity exchanges in the first fortnight of March witnessed a drop of 51% and stood at Rs 3.43 lakh crore, according to data compiled by the Forward Markets Commission. This drop can be attributed to decline in volumes across the board except farm products. Turnover of all the 17 commodity exchanges offering futures trading in the country, including MCX, NCDEX and NMCE, stood at Rs 6.96 lakh crore in the same period last year.

The turnover from bullion witnessed a maximum fall of over 62% to Rs 1.16 lakh crore during March 1-15 from Rs 3.07 lakh crore in the year-ago period. Similarly, business from metals like copper declined 60% and stood at Rs 59,345 crore from Rs 1.48 lakh crore while turnover from energy commodities fell 54% to Rs 73,715 crore from Rs 1.60 lakh crore. On the other hand, farm items recorded an increase in turnover by over 17% to Rs 94,680 crore during March 1-15 from Rs 80,913 crore in the year-ago period.

The turnover of commodity exchanges from April 1 to March 15 during the financial year 2013-14 has fallen 40% at Rs 98.57 lakh crore against Rs 164.79 lakh crore in the year-ago period. After the imposition of commodity transaction tax the trading volumes on the bourses have been hit. Besides, investors are also trading cautiously after the Rs 5,500-crore payment crisis came to light on National Spot Exchange (NSEL) a few months ago.

In order to boost the trading volumes, FMC has given freedom to national-level bourses to charge different transaction fee. It has also allowed them to levy different transaction fee based on delivery and non-delivery based contracts.

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