Commodity market to grow by 30% by 2010: ASSOCHAM

16 Jun '08

2 min read

Indian commodity market which expanded by 50 times in a span of 5 years from Rs.66530 crore in 2002 to Rs.3,3753,36 crore in 2007, is now expected to grow at a steady speed of about 30% by 2010 and touch a volume of Rs.74,156,13 crore since people's participation in such trade would continue, according to findings of the ASSOCHAM.

In 2003, the size of commodities trade stood at Rs.129364 crore which thereby went to Rs.571759 crore in 2004, recording an increase of 341%.

In 2005, the growth in commodities trade was by 276% as it went up at Rs.2,155,122 crore. However, in 2006, though the commodities trade increased to Rs. 2,739,340 crore, it could register year on year growth of 27% over the last year.

For 2007, the trade in commodity reached at Rs.33,753,36 crore and registered a growth of 23%, say the ASSOCHAM findings.

Releasing the ASSOCHAM estimates, its President, Mr. Sajjan Jindal said that the growth in commodities derivatives trading which was at massive level in the last five years would now grow by about 30% to reach projected level of Rs.7415613 crore in next 2 years.

The turnover as proportion to GDP of commodity trade increased from 4.7% in 2004 to 20% in 2007 and is expected to go up many folds since commodity markets would remain friendly to its subscribers.

The daily average volume of trade in commodities exchanges by December 2007 was over Rs.12,000 crore, said Mr. Jindal. Gold, silver and crude recorded the highest turnover in MCX while in NCDEX, soya oil, guar seed and soyabean and in NMCE pepper, rubber and raw jute were the most actively traded commodities on an average. This trend is likely to continue.

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Associated Chambers of Commerce and Industry of India

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