The Hindu Business Line : `Commodity exchanges in growth trajectory'

THE commodity exchanges in the country are in a growth trajectory and the total volume of trade as at the end of December 2005 has been in the order of Rs 13.88 lakh crore, compared to Rs 5.71 lakh crore during the previous year, according to the Mr R. Ganesh, Head of Spot Markets, NCDEX.

The growth in the volume of trade is phenomenal in the context of the recent emergence of the exchanges in the country facilitated by the increase in the number of commodities (more than 89) available for trading and the provision of an online trading platform.

Mr Ganesh also said that a system of collective decision-making has been put in place and the meeting of the Co-ordination Committee of Exchanges, having representation of national and regional exchanges, are being held at regular intervals to deliberate on issues relating to commodity markets.

In October last year, a group was formed to study issues relating to compulsory delivery.

Serious efforts are being made to increase the awareness level of commodity markets to raise the confidence level of various stakeholders by the FMC jointly with the various exchanges across the country.

So far, such programmes have been held at Kolkata, Guwahati, Delhi, Raipur, Jodhpur, Hapur, Mangalore, and Taliparamba.

A joint programme of the three national exchanges was held in Kochi last October, he added.

Mr Ganesh was in the city recently to participate in an awareness programme to explain the functioning of the commodity exchanges in the country.