Market

REPORT

OF

THE GROUP ON

FORWARD AND FUTURES MARKETS

Department of Agriculture & Cooperation, New Delhi

December 2001

Contents

Chapter 9; 9; Page

Preface (i)

Executive Summary ; ; ; ; (ii-iii) 9;

1. Background on Forward and Futures Trading in

&India #9; #9; #9; #9; 1-7

2. Reform Initiatives #9; #9; #9; #9; 8-10

3. Institutional Interface of Futures Trading

set up 9; 11-15

4. ‘Candidate Commodities’ for Futures Trading #9; 16-21

5. Cost and Benefits of Action Plans 9; 9; 9; 22-24

6. Recommendations 9; 9; 9; 9; 25-28

References 29-30

Annexures

I. Exchange-wise (permitted) Commodities.

II. Exchange-wise status of implementation of reforms.

III. Exchange-wise volume and value of trading.

IV. List of commodities prohibited for futures trading.

V. List of commodities under regulation – permitted for futures trading.

VI. List of commodities in which NTSD contracts are prohibited.

VII. List of commodities in which NTSD contracts are regulated.

VIII. Constitution of the Group on forward and futures markets.

Preface

This report is prepared in response to the request of Department of Agriculture and Cooperation in the process of finding implementable solutions to the recommendations of the Expert Committee on Agricultural Marketing. The Report specifically covers areas relating to commodity forward and futures markets, administration of which is mandated to the Department of Consumer Affairs.

Though a number of major initiatives have been taken in promoting commodity futures markets in India in the recent past, many of the constraints inherited over decades of scarcity mindset generated ‘inward looking’ policies continue. The efforts of the Group have been not only in...