What would be the scenario five years from now especially trading through commodity exchanges?
Five years is too long a period to predict for the commodity market. One thing is certain. It is no more an exclusive domain of some traders. Top B-schools in the country have introduced relevant courses in commodity markets, risk management and price discovery. Foreign institutional investors and multi-national corporations are eying a pie in this hitherto unexplored market. Foreign direct investments, if permitted, may change the entire complexion of the commodity trade. Let us not forget banks and mutual funds have changed the name of the game in a very short span. Much depends on the policy decisions of the government. It is high time the government removes the control over Futures trading. Any control would cause more damage than benefits to the economy. Which are the other commodities that can be traded on Futures exchanges? At present, nearly 90 commodities are traded on the three national exchanges. They include bullion, base metals, mineral oil, food grains and cash crops like
