DYNAMICS OF INDIAN COMMODITY MARKETSTEVENS BUSINESS SCHOOL BATCH: 2009-2011 Page 3
Different web based literature has been studied to understand which are the majorplayers of commodity markets in the world? And what is their way of operation? Whichare the major commodity exchanges in India? What is their modus operandi?While we were surveying various web site we came to know the whole commoditymarket and the exchange takes place in this market is broadly classify into two principlecategories that is agriculture and non agriculture commodity market.The first session deals with the significance of commodity market. As commodity marketis the place where 2 parties agree to buy and sell a specified and standardized quantityof a commodity at a certain time of future at a price agreed upon at the time of agreement agreed upon irrespective of availing future price.Following the significance of commodity market is the history of the commodity market.The root of commodity market is traced from Japan where Japanese merchants used to
store rice in ware houses and later on they have issued „Rice tickets‟. And a
s the timepasses rice tickets are started to accepted as a currency.Patterns of exchange that was prevailing in the market which was auction and thepattern that is currently prevailing in the market which is future is discussed. Majorinternational and national players are described.Various national and international markets and their features in brief are described. Theperspective of commodity market in which active and passive mode of commoditymarket, volatility, liquidity of commodity market and their relation with economy arediscussed.Benefits of future commodity markets to agriculturists, farmers are discussed in brief along with price discovery, price risk management, import-export competitiveness,improved product quality-market transparency etc. are discussed. The attractivefeatures of commodity market, various instruments those are available in the market arelisted.