MUMBAI (Reuters) – Commodity futures turnover in India, the world’s second largest wheat and rice growing nation, grew only 8.95 percent in the first three months of the fiscal year from April, despite a double digit jump in volumes of energy and agri commodities.
Total value of trade rose 41.72 trillion rupees from April to June, a statement on the Forward Markets Commission’s (FMC) website said. FMC regulates commodity markets in India.
Bullion volumes fell 7.32 percent on year to 20.57 trillion rupees in the first quarter of the fiscal year, it added.
Value of trade in energy also jumped 35.52 percent to 7.96 trillion rupees, while agri commodities, which has witnessed some sharp rise in prices, jumped 30.47 percent to 5.02 trillion rupees.
The regulator in March had banned futures trade in guar, used in the food processing and energy inustries, but are keen on re-listing the commodity at some point.
Commodity Exchanges in India, which allowed futures trading in commodities in 2003, trade in about 80 commodities ranging from gold to carbon credits, but most of its volumes are cornered by 8-10 commodities.
India has 21 commodity bourses, including five operating at the national level. Foreigners are still not allowed to trade in futures, but can buy stake in commodity exchanges.
(Reporting by Siddesh Mayenkar; Editing by Stephen Powell)