Abstract

The commodities market is critical to India's economic development. Commodities and

commodity markets are expected to be India's primary growth area in the future. India is on
track to become a significant producer, consumer, exporter, and importer of a variety of goods.
Many investors have recently been drawn to commodities trading for a variety of reasons,
including price transparency, low margins, risk management, and advantages to farmers owing
to price certainty and a well-organized market. Furthermore, due to its strict rules, the
commodity market assures consistent standardisation of product quality and has made it
possible to forecast commodity prices, hence decreasing risk. Exporters can utilise the
commodities futures market to hedge their price risk and increase their competitiveness. As a
result of the free-trade environment, the Indian commodities market has been integrating with
the global market. Unlike the stock market, commodities provide a unique investment
opportunity since they are less volatile than stocks and bonds. Commodities are a highly liquid
asset class that allows investors to profit from price fluctuations in commodities. The
commodity market's extensive trading hours also make it possible to access markets at any
time.

Table of Contents
CHAPTER - I ..............................................................................................................................................
1
INTRODUCTION ....................................................................................................................................
1
1.1 Statement of the problem .........................................................................................................
2
1.2 Importance of the study ............................................................................................................
3
1.3 Scope of the study .....................................................................................................................
4
1.4 Objectives of the study ..............................................................................................................
4
1.5 Limitations of the study .............................................................................................................
5
CHAPTER - II .............................................................................................................................................
6

Faculty of Commerce, University of Mumbai