A commodities exchange is an exchange where various commodities and derivatives products are traded. Most commodity markets across the world trade in agricultural products and contracts based on them. These contracts can include spot prices, forwards, futures and options on futures. As of now there are six commodity exchange market in India. These six exchanges are explained below one by one.
1. National Multi Commodity Exchange:
• Central warehousing corporation
• Gujarat State Agricultural Marketing Board
• Gujarat Agricultural Industries Corporation Limited
• National Institute of Agricultural Marketing
• Neptune Overseas
• Punjab National Bank
• Castor Seeds
• Black Pepper
2. Multi Commodity Exchange of India Ltd (MCX):
Establishment: Nov. 2003
Achievements: MCX holds 86% market share of commodity exchange in India. It operates in more than 40 commodities. It is the world’s largest exchange in silver and gold.
• National spot exchange limited, India energy exchange, Singapore mercantile exchange global board of trade, IBS Forex, National Bulk Handling Corporation, ticker plant lilited.
3. National Commodity and Derivatives Exchange Limited (NCDEX)
Establishment: Dec. 2003
Promoters: ICICI Bank, LIC, NABARD, CANARA BANK, PNB, CRISIL, IFFCO, Goldman Sachs, Intercontinental Exchange, Renuka Sugar, J.P. Capital
Commodity Traded: It facilitates the trade of 57 commodities.
• Cereals and pulses
• Oil and oil seeds
• Plantation products
• Gold silver
• Crude Oil
• Brent Crude Oil
• Polyvinyl chloride
4. Indian Commodity Exchange (ICEX): It is a screen based online derivatives exchange for commodities.
Establishment: Nov. 2009
Promoters: It has Reliance Exchange Next Ltd. as anchor investor and has MMCTC ltd. India Bulls financial Services Ltd, Indian Potash Ltd., KRIBHCO and IDFC.
• Crude oil
• Natural gas
• Soyabean oil
• Menthe oil
• Iron ore
5. Shariah Index: The Bombay stock exchange and Taqwaa advisory and Shariah investment solutions have launched it.
Establishment: Dec. 2010
This is the first Shariah index created in India utilizing the strict guidelines and local expertise of a domestic Shariah Advisory Board. The index comprises the 50 largest and most liquid shariah compliant stocks within BSE-500.
6. Universal Commodity Exchange: It’s a national level electronic commodity exchange in India.
Establishment: April, 2013
Promoters: Commex Technology, IDBI Bank, IFFCO, NABARD and REC.
Commodity Traded: It deals in 11 commodities.
• Crude oil
• Refined soya oil