STUDY OF AGRICULTURE COMMODITY MARKETS FOR FUTURE TRADING IN INDIA

Abstract

newline India is the third largest economical country in Asia after Japan and China, as newlinemeasured in terms of its Gross Domestic Product (GDP). This is predictable to continue newlinewith growth just under 7% by 2015 Indian agriculture policy is aimed fundamentally at newlineimproving food self sufficiency and alleviating lack of food through food distribution. newlineGlobally, Commodity markets have occupied a very important place in the economic newlinegrowth and progress of countries. The concept of organized trading in commodities newlineevolved in the middle of the 19th century. The Forward Markets Commission (FMC), the newlineregulator for the commodity futures market, was brought under the administrative control newlineof the Ministry of Finance in September 2013. newlineOrganized futures market developed in India by the surroundings awake of newlinequotBombay Cotton Trade Association Ltd.quot in 1875. In 1893, following widespread newlinediscontent amongst leading cotton mill owners and merchants over the functioning of the newlineBombay Cotton Trade Association, a separate association by the name Bombay Cotton newlineExchange Ltd was constituted. After independence, the Constitution of India brought the newlinesubject of quotStock Exchanges and futures marketsquot in the Union list. As a result, the newlineresponsibility for regulation of commodity futures markets devolved on Govt. of India. newlineThe current research work is the appearance of Agriculture commodities in newlinecommodity markets. Agricultural commodity futures are market-based instruments for newlinemanaging risks and they help in orderly establishment of efficient agricultural markets. newlineAn unexpected price break down of food crops will have disturbing special effects on newlinefarmers. Now here comes the important role of futures market. It opens up a new newlineopportunity to researcher to work on this topic. newlineThis research work covers five objectives 1. To study Agriculture Commodity Markets in India. 2. To study Future trading of Agriculture commodity markets in India. 3. To analyze trends and fluctuations in the prizes of spot and Future trading i