Commodity Derivatives Market in India

India is among the apex producers of a number of commodities and has a long history of trading in commodity derivatives. The commodity market was quite prevalent till 1970s but its development was hampered due to certain restrictions and regulations introduced by Indian Government. In recent years these restrictions have been removed for the smooth functioning of commodity trading. Commodity market has occupied imperative position in Indian economy since the establishment of Forward Market Commission in April 2003. There are five national and sixteen regional commodity exchanges recognised and regulated by this Commission. Different types of commodities such as industrial, agricultural; bullion, plantation etc. is traded on commodity exchanges in the country. So considering these points an attempt has been made to know the regulatory framework of commodity futures market in India and to present the various developments in Indian commodity derivative market and commodity exchanges.